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2011 (1) TMI 239 - CESTAT, AHMEDABADFraudulent Cenvat Credit - Processing of Grey Fabric on job work basis - Demands have been confirmed against the assessees by the revenue on the ground that the cenvat credit was taken on the basis of invoices issued by persons who were found to be non existent based on alert circulars issued by the jurisdictional Commissioner of Central Excise - Held that: - once it is clear on the basis of facts, that the appellant was required to take reasonable steps in respect of the suppliers in respect of whom demand has been raised, all the assessee had to do was just to show that the supplier existed. This is in spite of the fact that if we go strictly by the rule, if the assessee did not have personal knowledge about the existence of the supplier, he was required to obtain a certificate either from a person known to him or from the central excise superintendent. - No evidence has been produced by any of the assessees that they had fulfilled the obligations cast on them by Rule 7 irrespective of the circumstances and irrespective of facts of the case. - Matter remanded back for verification of evidences. Regarding extended period of limitation - suppression of facts - Held that: - when we, analyse the facts and the law, what emerges is that if an assessee has not fulfilled the obligations cast on him under Rule 7, the obvious conclusion and the only conclusion possible appears to be that suppression of facts or mis-declaration can be invoked. We recognize the fact that the suppression of fact or mis-declaration is a factor which is required to be concluded based on facts and circumstances in each and every individual case. Therefore we would not like to lay down this proposition as a conclusion binding on the original adjudicating authority but leave the issue open for a decision by the lower authority at the time of de novo adjudication.
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