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2016 (12) TMI 717 - CESTAT HYDERABADDenial of CENVAT credit - denial on the ground that appellants have availed irregular credit on MS Channels, MS Angles, MS Rolls, MS Bright Bars and Beams under the category of capital goods for the period August 2010 to January 2012 - Held that: - On perusal of records it is seen that MS Angles, Beams, Channels etc., were used by appellants for fabrication of tubes connecting the various machineries. There is no case for the department that the subject items were used for laying foundation or for building/shed. There is no allegation that the subject items were diverted in any other manner. Pipes fall within the definition of capital goods and therefore the subject items used for fabrication of steel tubes/pipes to connect the machines would fall under the category of parts/components of capital goods. Further it is seen that the department had full knowledge of the credit availed by appellants in the earlier audit conducted in 2010. Further the ER-I returns filed by appellant disclosed the credit availed. - Therefore on merit I find that the appellant has succeeded and the credit is eligible. Extended period of limitation - Held that: - The Show Cause Notice is issued invoking the extended period even though, the department had full of knowledge with regard to credit availed by the appellant in 2010. No objection was raised by the department after the earlier audit. There is no evidence to establish suppression of facts with intent to evade payment of duty. On such score, the appeal is allowed on merit as well as on the ground of limitation. CENVAT credit allowed - appeal allowed - decided in favor of appellant-assessee.
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