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2013 (12) TMI 577 - AT - Central ExciseEligibility for cenvat credit – Clandestine removal of goods – Capital goods purchased from registered dealer – Whether the appellant is eligible to avail CENVAT Credit – Held that:- Having discharged the duty liability on the capital goods subsequently, after the clearance will itself an indicator that CENVAT Credit availability of Central Excise duty paid on such capital goods is barred as there was suppression and mis-statement by the manufacturer - Though the appellant has claimed that they were not aware of non-duty paid character of the goods received by them from a registered dealer - the appellant’s Deputy General Manager has clearly admitted that the entire transaction of over-valuing the capital goods and making the payment to the registered dealer was in order to square up the account of the outstanding payments due - there is an element of doubt as to the contentions raised by the appellant that they were not aware of such clearances of capital goods by the manufacturer without payment of duty. Once there is over-valuation of value of capital goods, which were cleared by the manufacturer, subsequently having been affirmed that there was something wrong in the transaction - the appellant is in-eligible to avail CENVAT Credit - though the manufacturer of capital goods paid the duty, the same was not available as credit to the appellant as per the provisions of Rule 9(1)(b) of CENVAT Credit Rules, 2004. Period of limitation - The Revenue authorities have issued a show cause notice to the appellant on detecting irregularity within one year of the payment of Central Excise duty by the manufacturer and from the date of TR-6 challan which the manufacturer had paid the duty - the appellant may be in knowledge of entire transaction that has taken place which has resulted in clandestine removal of the goods by manufacturer – Decided against Assessee.
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