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2011 (9) TMI 897 - KARNATAKA HIGH COURTManufacture - Assessee engaged in the manufacture of brass strips, phosphor bronze strips and copper strips falling under chapter sub-heading 7409 21 00, 7409 11 00 and 7409 31 00 respectively. The Commissioner confirmed demand of ₹ 3,50,33,094/- under Rule 14 read with proviso to Section 11A as irregular credit availed by it - Tribunal held that demand barred by limitation - Held that:- departmental authorities are fully aware of the activities undertaken by the assessee during the material period. It had periodically filed returns relating to receipt of inputs and availment of Cenvat credit. It had also filed periodical returns showing payment of excise duty on its final products. Authorities never raised objection to the assessee taking and utilizing Cenvat credit during the material period for payment of duty on its final products as reflected in the monthly ER-1 returns. Therefore, the impugned demand invoking larger period under Rule 14 of the Cenvat Rules read with proviso to Section 11A is not sustainable. The Revenue has not made out a case that the assessee had suppressed any relevant fact from the department or took the Cenvat credit of duty paid with an intention to evade payment of duty on final products - as the demand was made beyond the period of one year, it was clearly barred by time - Decided against Revenue.
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