2014 (11) TMI 861 - HC - Central Excise

CENVAT Credit - Bar of limitation - Bombay High Court dismissed the appeal filed by the Revenue against the order of CESTAT MUMBAI 2010 (3) TMI 536 - CESTAT, MUMBAI holding that Tribunal perused the show cause notice in its entirety and in the context of legal position invoked. In the teeth of the provision invoked, found that the facts and circumstances would show that it was inapplicable. This was not the case of any fraud, willful mis-statement, collusion or suppression of fact or contravention of provisions of the Excise Act or Rules made thereunder with intention to evade payment of duty. The findings of fact would go to show that immediately on department bringing to the notice of the Assessee the lapse or default, the demand of duty was complied and the Assessee made the requisite entries. In such circumstances, the proceedings in pursuance of show cause notice ought not to have been pursued further. However, that was done and on unsustainable ground and invoking inapplicable provisions. In such Circumstances, the findings of fact do not give rise to any substantial question of law.

Summary

The Bombay High Court dismissed the appeal of the respondent-assessee as the Tribunal found that the show cause notice invoking Section 11A(1) of the Central Excise Act for wrongful availment of CENVAT credit was not sustainable. The Tribunal concluded that there was no fraud or intention to evade duty, and the demand was complied with promptly. Therefore, the appeal was devoid of merits and was dismissed.