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2015 (8) TMI 1369 - AT - Central ExciseCENVAT credit - denial on the ground that the provisions of Rule 3(4) and Rule 3(5) of the CCR have not been complied with inasmuch as the appellant is not the consignee of those goods - whether the appellant is eligible for the cenvat credit and non-observance of the procedural formalities cannot take away the substantive right for availment of cenvat credit? - Held that: - the credit attributable to those disputed invoices have been taken by the appellant alone, and as such, there is no question of misuse of cenvat credit by anybody else - since Cenvat Credit Rules are beneficial provisions incorporated to reduce the cascading effect of Central Excise duty, in absence of any specific finding that the cenvat credit has been fraudulently availed, the said benefit cannot be denied in view of the fact that the capital goods have been received in the factory and used for the intended purpose - cenvat credit cannot be denied for non-observance of procedural conditions. Extended period of limitation - Held that: - Since the facts were known to the Department regarding taking of cenvat credit on the disputed invoices way back in 2003, the Show Cause proceedings initiated in 2006 is clearly barred by limitation of time and the demand cannot be fastened against the appellant - extended period not invocable. Appeal allowed - decided in favor of appellant.
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