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2019 (6) TMI 1498 - AT - Central ExciseReversal of CENVAT Credit - services used in relation to abandoned project - even one ounce of product was not produced - extended period of limitation - penalty - HELD THAT:- The appellant availed CENVAT Credit on the services used in relation to setting up of Seemless Tube Mill Project which was abandoned without even producing one ounce of product. Input services or services which are used in or in relation to manufacture of final products including the business related to the final products, the entire project has been abandoned and there is no manufacture whatsoever. It would have been a different case if the project had run for some time and some goods were manufactured and thereafter the project was abandoned. In this case the appellant decided to abandon the project before it is even set up - Under these circumstances, it is found that by no stretch of imagination can the services on which CENVAT Credit has been availed, be related to the manufactured final products either directly or indirectly or any business related to such manufactured products. Extended Period of Limitation - penalty - HELD THAT:- The assessee cannot plead ignorance. They are a very large Public Sector Undertaking in operation for several decades and have been handling the matters of indirect taxation. Under these circumstances, the assessee has suppressed the information that they have abandoned the Seemless Tube Mill Project on which they have already availed the CENVAT Credit -The extended period of limitation has been rightly invoked in this case and penalty has been correctly imposed. Appeal dismissed - decided against appellant.
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