2017 (5) TMI 1383 - AT - Central Excise

100% EOU - CENVAT Credit of the duty paid on export invoices without filing any rebate/refund claim - time limitation - Held that - the appellant clearly intimated about their taking re-credit in their Cenvat Account - Despite the clear intimation given by the appellant to the department, the department took 3 years to issue the SCN, which was issued on 17.10.2011 - Since the appellant disclosed the fact about taking re-credit, there is absolutely no suppression of the fact on part of the appellant - SCN issued after 3 years is clearly time barred - appeal allowed on the ground of limitation - decided in favor of appellant.

Summary

Issues:
1. Availing CENVAT Credit without filing rebate/refund claim
2. Time limitation for issuing show-cause notice

Analysis:
1. The appellant availed CENVAT Credit of duty paid on export invoices without filing any rebate/refund claim. A show-cause notice was issued, leading to an adjudication order. The appellant, being dissatisfied, appealed before the Commissioner (Appeals), who rejected the appeal. The appellant contended that duty was paid inadvertently, as they were not required to pay duty being a 100% EOU. They approached the Department for rebate/re-credit of duty, submitting an undertaking as directed. Despite repeated attempts and no response from the Department, the appellant took re-credit of duty, informing the Department promptly. The show-cause notice issued after almost 3 years was deemed time-barred due to the lack of suppression of facts by the appellant. The Tribunal set aside the impugned order and allowed the appeal solely on the ground of limitation without delving into the merits of the case.

2. The Tribunal observed that the appellant's disclosure of taking re-credit in their CENVAT Account was promptly communicated to the Department. Despite this clear intimation, the show-cause notice was issued after a significant delay of 3 years. As there was no suppression of facts by the appellant regarding the re-credit, the Tribunal concluded that the show-cause notice was time-barred. The delay in issuing the notice was deemed unjustified given the appellant's proactive communication with the Department. Consequently, the Tribunal set aside the impugned order, emphasizing the importance of adhering to the statutory time limitations for issuing show-cause notices. The decision highlights the significance of timely actions by the tax authorities in initiating proceedings and the consequences of exceeding the prescribed time limits in such cases.

This detailed analysis of the judgment provides insights into the issues of availing CENVAT Credit without filing rebate/refund claims and the time limitation for issuing show-cause notices, elucidating the Tribunal's decision and reasoning behind setting aside the impugned order based on the ground of limitation.