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2013 (6) TMI 687 - GOVERNMENT OF INDIADuty demand - non reversal of proportionate Cenvat credit on breakages of glass bottles - Invocation of extended period of limitation - Held that:- extended period can be invoked only for reason of collusion, fraud, misstatement or suppression of fact with an intention to evade duty. In this case the applicant has undisputedly declared/mentioned breakage of bottles in their RG-I register and ER-I monthly returns. They further stated that many audit parties of Central Excise department conducted audit from 2004 to 2009 of their record and nobody pointed out any evasion by way of non-reversal of Cenvat credit as alleged by the department in this case. Under such circumstances, Government finds that when the breakage of bottle by applicant has been declared in their excise record and their verification by such records by various excise audit teams is undisputed, there can be no reason to allege collusion, fraud, misdeclaration or suppression of fact by the applicant. Hence, given the fact and circumstances of this specific case, extended period of five years in terms of Section 11A(1) cannot be invoked. Cenvat credit on glass bottles that are damaged or broken is not admissible. Even remission of duty before removal on goods lost or destroyed by natural causes or unavoidable accident if claimed by the assessee they have to reverse the Cenvat credit taken on inputs used in the said goods as per the Circular No. 800/33/2004-Cx., dated 1-10-2004. In view of the above instructions of Government, the assessee is not entitled to avail the credit on broken or damaged glass bottles/pet bottles at whatever stage they lie in the factory. - Matter remanded back - Decided partly in favour of assessee.
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