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2016 (9) TMI 89 - AT - Central ExciseCenvat Credit - Whether the asbestos sheet is covered under the ambit of capital goods or not - Held that:- the adjudicating authority in his findings clearly brought out what are capital goods and came to the conclusion that Asbestos sheets are not capital goods and the credit so availed on these items is recoverable. Further he has invoked extended period for suppression of facts with an intent to evade payment of duty and hence penalised them under Rule 15 (2) of CCR, 2004. I totally agree with the order passed by the First Appellate Authority and it is also a fact that there has been a specific exclusion in the definition of capital goods. The ld. Commissioner (A) is therefore right in holding that if the inputs were to include every product which is somehow related to the premises where the manufacturing process goes on, then there may not be a need to provide a definition of the term capital goods and therefore, the acceptance of the contention of the assessee would render the definition of the term “capital goods” to be redundant as well as the provisions relating to extending the benefit of Cenvat credit to the capital goods. Invokation of extended period of limitation - Held that:- the contention of the appellant that the credit was availed in Oct 2011 and the notice demanding recovery of credit was issued on 3.6.2014; that the availment of credit was reflected duly in ER 1 returns and that the cenvat credit were regularly scrutinised by audit officials has nowhere been contested to be wrong by the revenue. It is also to be borne in mind that the appellant mill is managed by the Govt. of Tamilnadu. Therefore, the invocation of extended period is unsustainable. - Decided in favour of appellant
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