Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 585 - AT - Central ExciseEligibility of cenvat credit on the steel item - limitation period prescribed under Section 11A - Held that:- In the present case, no iota of evidence has been brought on record by the Department to prove that taking of cenvat credit by the appellant is attributable to suppression, misstatement, collusion etc., with intent to evade payment of duty. Thus in such an eventuality, the SCN was required to be issued within one year from the relevant date. In so far as the SCN dated 16.04.2010 for the period 2008-2009 is concerned, the same is barred by limitation of time, having been issued beyond the period of one year. However, in so far as the credit taken for the period 2009-2010, the SCN has been issued within limitation period prescribed under Section 11A of the Central Excise Act. Thus as per the decision of the Larger Bench of the Tribunal in the case of Vandana Global Ltd. vs CCE Raipur [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB) ] the appellant is liable to reverse cenvat credit attributable to such ineligible credit along with interest. Imposition of penalty under Rule 15(2) of the Cenvat Credit Rules 2004, read with section 11AC of the Central Excise Act 1944 is not justified in the facts and circumstances of the present case, especially in view of the fact that there was no element of suppression, misstatement, collusion, fraud etc., on the part of the appellant to defraud payment of Revenue to the Government exchequer. To sum up, SCN initiated for the period April 2008 to February 2009 is barred by limitation of time as per the proviso to section 11A of the Central Excise Act, 1944 and to that extent the appeal succeeds. With regard to the period 2009-2010, am of the view that wrongly availed cenvat credit can be recovered from the appellant along with interest. Thus, appeal for the period 2009-2010 is dismissed.
|