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TMI Blog2016 (9) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... integrally connected to the process of manufacture. Therefore by following the ratio laid in various judgments of Hon'ble Apex Court and CESTAT wherein it was held that Cenvat credit on railway track which are used as handling system for raw material is admissible as these are essential and integrally connected to the process of manufacture of final product. Therefore, the appellant has established a case on merits and that credit is admissible on MBC sleepers. Period of limitation - disputed period is 1/2008 to 4/2009 and the show cause notice is dated 15-11-2011 - disclosure of availment in ER-1 returns - Held that:- there is no case for revenue that the appellant has not disclosed the credit details in their accounts or in ER-1 returns. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detailed reply explaining the use of MBC sleepers in the factory. MBC sleepers are used for laying railway line which is used for transportation of input materials inside the factory and to carry finished cement outside the factory. The appellants had disclosed the fact of availing credit in their ER-1 returns. After due process of law, the original authority confirmed the demand, interest and imposed equal amount of penalty. The original authority observed that MBC sleepers are used for railway line and is therefore in the nature of laying foundation and not eligible for credit. The alternative submission of the appellant that the subject goods are inputs was also not accepted and the demand was confirmed relying on the decision laid in V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed all the details of availment of credit in ER-1 returns as per statutory requirement. As there is no suppression, the extended period is not invokable. He pleaded that the appeal may be allowed. 5. Against this, the learned AR Shri V.K. Shastri vehemently argued that the appellants have suppressed facts and so the show cause notice issued beyond the normal period is correct. He submitted that the fact of availment of credit would not have come to light, except for the scrutiny of records by department. On merits, the learned AR submitted that MBC sleepers does not qualify as inputs as these are not used in manufacture of final products. They are not capital goods as these goods are neither component nor accessories of capital goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reflecting the details of credit. On such score, it cannot be alleged that the appellant has willfully suppressed facts with intent to evade payment of duty. The Hon'ble Apex Court in Uniworth Textiles Ltd Vs CCE Raipur 2013 STPL (web) 69 SC relying on the judgment in Pushpam Pharmaceuticals Co. Vs CCE, Bombay (1995 suppl. (3) SCC 462) has held that Suppression of facts can have only one meaning. That the correct information was not disclosed deliberately to evade payment of duty. On appreciation of facts and evidence placed on records, I find that revenue has failed to establish suppression of fact on the part of appellant. No malafide conduct has been proved against appellant. Therefore, I find that the extended period is not invokable. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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