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2014 (5) TMI 603 - HC - Central ExciseDuty demand - Invocation of extended period of limitation - MODVAT Credit - capital goods namely angles, beams, plates, M.S. Channels, sheets, welding rods, etc. - Whether the Tribunal committed substantial error of law in holding that the assessee was under bona fide belief that the items in question were capital goods for the purpose of Modvat Credit and, therefore, the Department was not entitled to invoke extended period of limitation and consequent demand of duty for the extended period of limitation as well as penalty imposed was liable to be set aside - Held that:- it could very well be seen that the assessee had a decision in his favour and therefore it was reasonable on its part to hold a belief that the Cenvat credit was available. It was only subsequently that the issue came to be decided against him. It was hardly a relevant aspect. The assessee acted bona fide and in honest belief that Cenvat credit was available. In the facts and circumstances, no intention could be ascribed on the part of the assessee to evade the duty or suppress any fact. In that view, there was no justification in invoking the longer period of limitation beyond the normal period as the conditions therefor were not satisfied. The question formulated does not raise any substantial question of law - Decided against Revenue.
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