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2019 (3) TMI 181 - AT - Central ExciseExtended period of limitation - penalty - irregular credit availed on input services - credit on disputed services was reversed along with interest much before the issuance of the SCN - malafide intent present or not - Held that:- The allegation in the SCN is mere suppression of facts without anything further. There is no such allegation that the Appellants was under legal obligation to give invoice wise and item wise details of Cenvat credit which they have not given. Merely, mentioning malafide intention or suppression of facts or willful default is not sufficient. There has to have something more to prove malafide/ suppression/ willful default on the part of the Appellant. In the present case, none of the authorities below have brought out any evidence on record to substantiate the allegation of suppression of fact or willful default on the part of the Appellant. All the transactions were duly reflected in excise return and this itself support the submission of the Appellant that there was no intention on the part of the Appellant to deliberate suppress any information with intention to evade payment of duty. Mensrea or malafide intention is necessary ingredients for invoking the extended period and also for imposing penalty - also, it is clear that immediately upon pointing out by the Audit, the Appellant reversed the entire Cenvat credit of ₹ 12,95,069/- with interest, without even waiting for show cause notice and this itself establishes that it is a case of bonafide mistake and there was no intention to evade duty. Penalty u/s 11AC of CEA - Held that:- The authorities below have failed to brought on record any evidence to prove suppression on the part of the Appellant and the Appellant by his conduct has proved that there was no malafide intention on the part of the Appellant and it was only a bonafide error/belief on the part of the Appellant, therefore neither extended period of limitation is invocable in the facts of the present case nor penalty is liable to be imposed on the Appellant. Appeal allowed - decided in favor of appellant.
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