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2017 (1) TMI 921 - CESTAT NEW DELHIWhether Cenvat credit can be permitted, when CVD is paid using the DEPB? - Held that: - the issue was very much disputed by different benches of the Tribunal and held differently - the dispute has been going on for fairly a long time, which came to be decided against the assessee only by the decision of the larger bench, it is concluded that the issue was disputed. Under the circumstances, it cannot be alleged that the appellant indulged in suppression of facts with deliberate intent to avail ineligible Cenvat credit. Consequently, the Show Cause Notice dated 31.1.2008, which has been issued covering the period March, 2003 to December, 2005 is to be held as time barred. In this view of the matter, no part of the demand will survive. The other ground on which the demand has been upheld in the impugned order is that some of the credits have been available on the basis of DEPB scrips issued under the earlier Foreign Trade Policy (2002-2007). In the light of the circular issued by the Board, the Cenvat credit has been denied. This issue has since been settled in favor of the appellants by the Hon'ble High Court, Delhi. In the case of Commissioner of Delhi Vs. Havells India Ltd. [2015 (10) TMI 1553 - DELHI HIGH COURT], it was held that there was no condition in the said notifications that the debits made in the DEPB issued under a particular FTP alone would be eligible for CENVAT credit and that debits in a DEPB issued under a previous FTP would not be eligible for credit. Appeal allowed - decided in favor of appellant.
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