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2018 (9) TMI 1487 - AT - Central ExciseTime Limitation - the matter had come to the notice of Revenue on 25/09/2008 and that the show cause notice was issued on 04/05/2011 - CENVAT credit - inputs which were procured during the period when the appellant was claiming exemption under small scale N/N. 08/2003-CE dated 01/03/2003 - Held that - The Departmental Officers visited the factory on 25/09/2008 and made endorsement on various registers and the issue was related to the period from August to September 2008 and therefore the Department was having only normal period of limitation for issuance of show cause notice since the Departmental Officers visited the factory - There was no willful suppression on the part of the appellant - the demand is hit by limitation.
Issues:
1. Time limitation for issuance of show cause notice under Section 11A of Central Excise Act, 1944. 2. Claim of Cenvat credit under small scale Notification No.08/2003-CE dated 01/03/2003. Analysis: Issue 1: Time limitation for issuance of show cause notice under Section 11A of Central Excise Act, 1944 The appeal arose from an Order-in-Appeal passed by the Commissioner (Appeals) CGST & Central Excise Commissionerate, Allahabad. The appellants, engaged in manufacturing rolled products of Iron & Steel, received a show cause notice dated 04/05/2011 under proviso to Section 11A of the Central Excise Act, 1944. The notice proposed the recovery of Cenvat credit amounting to ?2,44,597, alleging that the credit was claimed during a period when the appellant was availing exemption under Notification No.08/2003-CE dated 01/03/2003. The demand was confirmed through an Order-in-Original dated 27/03/2015. The appellant then appealed to the Commissioner (Appeals) who rejected the appeal, leading to the current appeal before the Tribunal. Issue 2: Claim of Cenvat credit under small scale Notification No.08/2003-CE dated 01/03/2003 During the proceedings, the appellant argued that the show cause notice issued on 04/05/2011 was time-barred as the Departmental Officers visited their factory on 25/09/2008 and made endorsements on various registers, including the RG-1 Register and Cenvat Account Register. The appellant contended that the matter came to the Revenue's notice on 25/09/2008 itself, and therefore, the demand was beyond the extended period of limitation. The Tribunal considered the submissions from both sides and observed that the Departmental Officers' visit to the factory on 25/09/2008 was crucial. Since the issue related to the period from August to September 2008, the Department had only the normal period of limitation for issuing the show cause notice. Not finding any willful suppression on the appellant's part, the Tribunal concluded that the demand was hit by limitation. Consequently, the impugned order was set aside, and the appeal was allowed. This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the Tribunal's decision in this case.
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