Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 616 - CESTAT BANGALORECENVAT Credit - stock transfer - shifting of input from one unit to another - the appellant shifted inputs and certain capital goods from Unit-II to Unit-I for manufacture of dutiable final products - revenue neutrality - extended period of limitation - HELD THAT:- Initially the appellant set up Unit-II for manufacture of Control Valves but subsequently, found that the space is inadequate and therefore, he set up another unit which is Unit-I adjacent to Unit-II and transferred some of the inputs and capital goods from Unit-II to Unit-I as per the advice given by the department. The appellant transferred the input and capital goods by raising invoice and debited duty in Unit-II and took credit of the same in Unit-I in terms of Rule 3(5) of the CCR. Both debit and credit entries made by both the units are reflected in the ER-1 returns and due intimation was given to the department by the appellant vide their letter dated 14.6.2010. Further, it is a case of simply stock transfer. Therefore, the restriction as provided in Rule 9(1)(b) of CCR is not applicable because the appellant has not availed credit on supplementary invoices. The appellant has paid the duty voluntarily in terms of Section 11A(2B) of the Central Excise Act on being pointed out by the Preventive Officers and took the credit of the same in Unit-I in terms of Rule 3 of the CCR. Extended period of limitation - HELD THAT:- All the facts from the beginning were in the knowledge of the department and specific intimation was also given by the appellant vide its letter dated 14.6.2010 and therefore, invoking extended period of limitation to confirm the demand is not tenable in law. Therefore, the entire demand is also barred by limitation as the period of dispute is from 1.8.2008 to 10.09.2008 but the show-cause notice was issued on 4.5.2011 by invoking extended period of limitation alleging suppression. The impugned order is not sustainable on merit as well as on limitation - Appeal allowed - decided in favor of appellant.
|