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2015 (5) TMI 20 - AT - Central ExciseDenial of input Cenvat credit on outward transportation services - Goods are being sold on FOR basis - Non Compliance of CBEC circular No. 97/8/07 dated 23.8.07 - Extended period of limitation - Denial on observation during the course of audit - Held that:- Considering the fact that in the case of Ambuja Cement Eastern [2010 (4) TMI 429 - CHHAITISGARH HIGH COURT], the Hon'ble High Court held that if the goods are sold on FOR basis, and if the freight is not included in the assessable value and the assessee has not complied with the condition of the CBEC circular No. 97/8/07 dated 23.8.07, the assessee is not entitled to take Cenvat credit on outward transportation service. Therefore, I hold that in this case, appellants are not entitled to take Cenvat credit on outward transportation service as same is not included in the assessable value of the goods in compliance with the CBEC Circular No. 97/8/07 dated 23.8.07. I further find that during the course of arguments, learned advocate for the appellants submits that show cause notice dated 27.3.2012 has been issued by invoking extended period of limitation. As there is no suppression on the part of the appellants, therefore extended period of limitation is not invokable. On this account, I find that availment of Cenvat credit came in the knowledge of department during the course of audit. If Audit would not have been conducted, the availment of inadmissible credit would not be known to the department. In these circumstances, I hold that extended period of limitation is rightly invoked. - Decided against the appellant.
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