9911796707
TMI Blog2019 (2) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... it was noticed that their aggregate value of clearances had reached Rs. 150 lakhs on 12.09.2011 and that they are not eligible for SSI exemption for the financial year 2011-12. They had cleared excisable goods valued at Rs. 68,09,255/- without paying Central Excise duty from 16.09.2011 to 04.01.2012 and had paid excise duty only after getting registration on 18.01.2012. Therefore, show-cause notice dated 22.08.2016 was issued to the appellants proposing to demand duty of Rs. 9,81,894/- along with interest and also proposing to impose penalties. After due process of law, the original authority confirmed the demand of Rs. 6,20,217/- after allowing the cum-duty benefit and also allowing Cenvat credit benefit of Rs. 2,46,609/- and the balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the credit available and the duty liability, which was certified by the Chartered Accountant. As per such letter, after adjustment of Cenvat Credit there is no duty liability on the part of the appellants. Subsequent to such letter, the department conducted audit in 2013. On intimation by Internal Audit party calling for details, the appellants had vide letter dated 04.07.2013 submitted all the sales/purchase invoices for the year 2011-12. All the 50 invoices on which the appellants' claimed credit for adjustment towards the duty liability for the impugned period was submitted. The audit party did not raise any objection on this count. They had raised the objection on wrong availment of credit on steel roofing to an amount of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken into consideration, there is sufficient eligible credit for adjustment to the duty demand confirmed. He argued that the appellants have procured inputs only from Sector Undertakings and all the transactions are accounted. They were unable to produce the invoices only because these were lost in cyclone/flood. The learned consultant adverted to page 119 of the appeal book and argued that the worksheet in the said page would show that if 47 invoices are considered, the same would be sufficient to adjust towards the duty liability as determined by the department. Even after such adjustments, there would be excess credit. 4. The learned consultant strongly argued on the ground of limitation. The appellants had intimated the department vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od 2009-10, 2010-11 and 2011-12 is given by them. So also, the credit eligible on inputs for the goods manufactured during the said period is also given in detail. Such details are supported by the certificate of a Chartered Accountant. It is the case of appellants that they omitted to notice that they have exhausted the SSI limit and continued to clear the goods without payment of duty during 2011-12. On realizing the mistake they have issued a letter to the department and taken registration on 18.01.2012. Since then, they have been discharging the excise duty after availing Cenvat Credit. The department had sent an audit party as per letter of the audit party, dated 10.06.2013, the appellants have furnished all the details with regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of duty is wholly incorrect, since the appellants themselves have brought the fact to the knowledge of the department vide their letter dated 18.01.2013. If there was any violation, the department ought to have issued show-cause notice within one year of such letter or at least after the conduct of audit. 8. From the discussions made above, I am of the view that the of the department has failed to establish any suppression of facts on the part of the appellants with an intention to evade payment of duty. The demand raised invoking the extended period, therefore, cannot sustain and requires to be set aside, which I hereby do. The appeal, therefore, succeeds on the ground of limitation. Appeal is allowed with consequential reliefs, if any. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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