2012 (10) TMI 165 - KARNATAKA HIGH COURT

Demand of duty, interest and penalty – limitation - manufacture of Ice-Cream - Cenvat credit of duty paid on prefabricated (construction) building (cold room) consisting of wall, roof, door, flashing window, on an assumption that they are required to manufacture final products – alleged that wrong availment of credit – Held that:- Initiation of proceedings is barred by time - In the returns it is clearly mentioned that they availed credit under the aforesaid rules. The audit partly accepted the same. It is only in the second audit that they noticed the mistake and initiated proceedings - in the light of the aforesaid facts none of the other conditions prescribed in the Proviso exists in this case to extend the period of limitation of 5 years - Tribunal was justified in setting aside the order passed by the appellate authority and in restoring the order passed by the original authority – in favor of assessee