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2015 (8) TMI 145 - AT - Central ExciseExtended period of limitation - Denial of CENVAT Credit - Manufacture of final product - Receipt of the disputed goods, their duty paid nature and utilization within the factory premises have not been disputed by the authorities below - Held that:- upon verification of the detailed accounts maintained by the appellant, the Chartered Engineer has certified the quantum of usage of the disputed goods for the said intended purpose. The documents available in the case record prove beyond any shadow of doubt that the fact regarding taking of cenvat credit by the appellant on the disputed goods were known to the Department beforehand. Such fact is evident from the SCN, wherein the duty demand has been computed based on the records maintained by the appellant. In view of the fact that the activities of the appellant regarding taking of cenvat credit on the disputed goods and use of the same for manufacture of the capital goods within the factory was known to the department way back in 2002, the show cause notice ought to have been issued within one year from the relevant date (i.e. taking of credit and furnishing of information by way of filing the ER-I return). Since the show cause notice has been issued in 2008, covering the period from June, 2002 to January, 2006, and no specific findings have been recorded regarding the involvement of the appellant in any fraudulent activities concerning fraud, collusion, miss-appropriation etc. with intent to evade payment of duty, the proviso to section 11A, in my opinion, cannot be invoked, justifying issuance of show cause notice, beyond the limitation period of one year. Further, the issue regarding taking of cenvat credit on the disputed goods is contentious one, because there are divergent views by different Benches of the Tribunal. According to my view, appellant entertaining a bonafide belief regarding eligibility of disputed goods for the purpose of taking cenvat credit, in view of conflicting decisions, are genuine and justified - proceedings initiated by the Department for recovery of the cenvat amount is barred by limitation of time and, accordingly, the impugned order is set aside - Decided in favour of assessee.
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