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2016 (3) TMI 945 - AT - Central ExciseSuo moto availement of credit of duty - excess paid duty adjusted against short paid duty - extended period of limitation invoked - Demand of differential duty - Held that:- As on pointed out by the audit team, the appellant have discharged the differential duty of bonfide belief that excess paid duty can be adjusted against short paid duty, difference is the amount for which the show cause notice was issued. It is pertinent to mention that demand of show cause notice arises from differential duty paid by the appellant, in such case department could have issued the show cause notice within one year from the date of payment of differential duty i.e. from September, 2007. Show cause notice issued was after almost two years from the date of payment of differential duty. In my view, even the payment of differential duty was made at the right time as the same stands payable only after finalization of cost audit report. Cause of action started from the date when the differential duty paid by the appellant, nothing has prevented the department to issue a show cause notice within one year from the date of payment of excise duty. There is no suppression of fact, fraud and mis-statement etc on the part of the appellant therefore demand is patently time bar. Therefore set aside the impugned order on limitation and allow the appeal of the appellant. - Decided in favour of assessee
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