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TMI Blog2022 (1) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory of production, it is held that the cenvat credit is allowable on these items under dispute as inputs, as defined in Rule 2 (k) of CCR, 2004. Disallowance of proportionate credit on inputs and input services used in the captive power plant - HELD THAT:- In all the Audit reports, the issue of proportionate disallowance for power supply from captive generation to the staff quarters was not raised. In spite of the fact that in the Audit report dated 4.5.2016 by way of objection no.5, expenses on the security services relating to the residential colony was taken, and the cenvat credit was proposed to be denied. Extended period of limitation - HELD THAT:- This issue has been raised by way of change of opinion and as such, there be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of raw material/inputs/input services used in generation of power, supplied to residential colony, situated adjacent to the factory, the dispute relates to the period March, 2013 to December, 2015. In the course of investigation, statement of Sr. Accounts Manager was recorded on 11.02.2016, wherein he initially agreed that there may be error in taking credit and reversed cenvat credit of ₹ 21,49,113/- vide Entry dated 11.02.2016 and further stated that remaining wrongly availed cenvat credit of ₹ 31,145/- shall be deposited shortly. The balance amount was also reversed on 15.02.2016. 4. Subsequently, a show cause notice dated 28.02.2018 was issued invoking the extended period of limitation proposing demand of aforementioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same is allowed. 6. On this alternative plea taken by the appellant, the Adjudicating Authority observed that such issue is not involved in the show cause notice and, therefore, the plea of allowability as inputs is not sustainable. The Commissioner (Appeals) has been pleased to uphold the disallowance observing that the appellant had agreed with the Department s contention and accordingly, reversed the same, but now, they have put forward a new plea alternatively credit may be allowed as inputs. Further, observing that such alternative plea is outside the purview of the show cause notice. 7. Having considered the rival contentions on this issue, I find that the Court Below has totally mis-conceived the issue, and there is failure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that in the Audit report dated 4.5.2016 by way of objection no.5, expenses on the security services relating to the residential colony was taken, and the cenvat credit was proposed to be denied. 10. In this view of the matter, ld. Counsel states that this issue has been raised by way of change of opinion and as such, there being no suppression or malafide on the part of the appellant/assessee, accordingly, I hold that extended period of limitation is not invokable. 11. Ld. Authorised Representative for the respondent/Department relies upon the impugned order and the observations of the Court below. 12. Having considered the rival contentions sofar the issue is concerned, I hold that cenvat credit is allowable and accordingly, dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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