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2018 (5) TMI 1713 - AT - Service TaxCENVAT credit - invoking extended period for demand - common inputs consumed in exempted goods and reversal of credit attributable to inputs consumed in exempted goods - Rule 6(3A) of Cenvat Credit Rules, 2004 - Different view of second audit party - Held that:- It is on record and undisputed that records of appellant were checked by audit party - the audit of the appellant’s units, was under taken regularly and no contravention was noticed, hence different view of the second audit party could not claim suppression of facts for invoking extended period for demand. The judgement of Hon’ble High Court of Karnataka in the MTR Foods Limited [2012 (10) TMI 165 - KARNATAKA HIGH COURT], is squarely applicable to the facts of the case, where it was held that in the returns it is clearly mentioned that they availed credit under the aforesaid rules. The audit partly accepted the same. It is only in the second audit that they noticed the mistake and initiated proceedings. In the light of the aforesaid facts none of the other conditions prescribed in the Proviso exists in this case to extend the period of limitation of 5 years The SCN dated 28.03.2016, is wrongly invoking extended period for demand hence, impugned order is liable to be set aside on limitation - Appeal allowed on limitation.
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