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TMI Blog2015 (10) TMI 2275X X X X Extracts X X X X X X X X Extracts X X X X ..... ited the factory premises and observed that the appellant had wrongly availed credit on 2 scalping machines on the invoice dated 23.3.2007. Though the appellant had availed credit on these machines, the machines were not available in the factory. On pointing out this, the appellant reversed the credit and informed the same to the department vide letter dated 9.1.2008. The appellant had also informed that credit had been availed on one Draw Bench machine which was not received in the factory and therefore the appellant reversed the credit involved on their own. Later, in 2011 a summons was issued to the production manager of the appellant. His statement was recorded. Thereafter the show cause notice dated 29/30.12.2011 was issued to the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubaneswar-2011 (264) ELT 14 (SC). 3. Per contra, learned AR reiterated the findings in the impugned order. It is submitted that the appellant though reversed the credit but did not pay the interest. Further, the fact that wrongful availment of credit would not have come to light without search and visit conducted by the officers of the department. Though the appellant stated in their letter dated 9.1.2008 that the machines were yet to be installed in the factory, the production manager in his statement dated 22.3.2011 stated that the credit was reversed because the machines were not available in the factory premises. That it is evident that the appellant had availed credit against the capital goods, namely, one draw bench machine and two s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... installed. It is the case of the department that these statements being contradictory it shows suppression and intention to evade payment of duty. I cannot agree with this view of the authorities below. On pointing out the defect, the appellant reversed the credit. If the appellant was liable to pay interest the department ought to have informed the same to the appellant soon after receiving the letter informing the reversal of credit. After coming to know about wrongful availment of credit on 2.1.2008 the respondent has remained in their bureaucratic slumber for almost four years. Therefore a summons is seen issued to the production manager and a case of suppression is sought to be built up by hanging on to the different words used by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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