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TMI Blog2013 (11) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in manufacturing of investment casting and were purchasing aluminium moulds for using them in their factory. Such moulds were purchased by the main appellant from open market and no manufacturing activity were carried out on such moulds, however appellant were recovering cost of moulds from their clients by issuing Central Excise invoices to them and paying duty from Cenvat account. Coming to such a conclusion that appellant is not following the proper procedures, show cause notice was issued for demanding wrongly utilised cenvat credit from them under the provisions of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944, interest thereof and also for imposition of penalties on the main appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Government in cash. He would submit that the said judgment of the Hon'ble High Court may not cover the issue in the question in hand, inasmuch as the provisions of Section 11D was being considered by their Lordship in that case while the question raised in the show cause notice in these appeals is the recovery of the amount under the provisions of Rule 14 of Cenvat Credit Rules, 2004 read with the provisions of Section 11A of Central Excise Act, 1944. It is his submission that the show cause notice was issue to the appellant on 25.11.2010 for the period February 2006 to August 2010. It is his submission that the entire demand is hit by limitation inasmuch, as the appellants were showing the clearances of moulds in their ER-1 returns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that any amount indicated on the invoice which is not payable by an assessee and even if it is paid by the assessee through cenvat account and collected from their purchasers, need to be paid to the Government through cash and their Lordship were considering the provisions of Section 11D in that case. I find that the ratio laid down by their Lordship in the case of Inductotherm (I) Pvt. Limited, on merits, is in respect of the provisions of Section 11D which were invoked in the said show cause notice. In the case in hand, I find that the show cause notice specifically invokes the provisions of Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944. The said Rule and the said Section if read harmo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is undertaken by the appellant. My views that the extended period of limitation cannot be invoked are also fortified from the statements of Director recorded on the date of visit of factory premises by the Preventive Officers. In the said statement dated 16.8.2010, the Director has specifically stated that they have paid the Central Excise duty on the sale of moulds under an impression that they were liable to pay duty on the same. There cannot be any dispute or motive attached to the said payment of Central Excise duty by the appellant on the mould which were billed to their clients. The findings recorded by both the lower authorities on limitation seems to be only the presumptions and not on the factual matrix as the first appellate aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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