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2015 (10) TMI 2275 - AT - Central ExciseAvailment of wrongful CENVAT Credit - Imposition of equivalent penalty - Held that:- Department has come to know about wrongful availment of credit on 2.1.2008. On pointing out the defect, the appellant reversed the credit. If the appellant was liable to pay interest the department ought to have informed the same to the appellant soon after receiving the letter informing the reversal of credit. - Department has no case that the invoices are bogus. No investigation at the end of supplier of machine was done. There may be many reasons for absence of the machines in the factory. If there was fraud it is for the department to establish the same. In a catena of judgements, the Supreme Court has clarified that when the fact is within the knowledge of the department, the extended period of limitation is not invokable. Again it is pointed out by the learned Counsel for the appellant, that the credit when reversed before utilization of the same would amount to not taking credit. Taking into consideration these facts and circumstances of the case, I do not find that department has been able to establish fraud, or suppression with intention to evade payment of duty so as to invoke extended period. I am of the view that the demand is barred by limitation. - Decided in favour of assessee.
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