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2016 (9) TMI 284 - AT - Central ExciseCenvat credit - irregular availment of cenvat credit - Mono Block Concrete sleepers(MBC) under the category of capital goods - used for laying railway line which is used for transportation of input materials inside the factory and to carry finished cement outside the factory - connection in or in relation to the process of manufacture of finished goods i.e. cement. Held that:- the use as explained by the appellant makes it clear that these are essential and integrally connected to the process of manufacture. Therefore by following the ratio laid in various judgments of Hon'ble Apex Court and CESTAT wherein it was held that Cenvat credit on railway track which are used as handling system for raw material is admissible as these are essential and integrally connected to the process of manufacture of final product. Therefore, the appellant has established a case on merits and that credit is admissible on MBC sleepers. Period of limitation - disputed period is 1/2008 to 4/2009 and the show cause notice is dated 15-11-2011 - disclosure of availment in ER-1 returns - Held that:- there is no case for revenue that the appellant has not disclosed the credit details in their accounts or in ER-1 returns. They believed that credit is admissible and maintained proper statutory records reflecting the details of credit. On such score, it cannot be alleged that the appellant has willfully suppressed facts with intent to evade payment of duty. Therefore, as the revenue has failed to establish suppression of fact on the part of appellant and no malafide conduct has been proved against appellant, the extended period is not invokable. The show cause notice being time barred is unsustainable. - Decided in favour of appellant with consequential relief
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