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2020 (1) TMI 543 - AT - Central ExciseCENVAT credit - duty paying documents - allegation of fake duty paying document fraudulently prepared and supplied by a number of registered dealers without actually supplying the corresponding input materials mentioned in the said duty paying documents - HELD THAT:- It is apparent from the impugned order that the Learned Adjudicating Authority, in respect of specific direction from this Tribunal, failed to adhere to the remand direction regarding consideration of submission made by the appellant and also the legal provisions - this Tribunal in case of M/s. Vindhya Steel, who happened to be one of the supplier of the input material, has set aside the order. An appeal against that order was also sustained by Hon’ble High Court of Kolkata. In the circumstances, we find that no charge against the appellant would sustain and the impugned order is bad in law. Time Limitation - HELD THAT:- The appellant had been submitting the document such as RG23A part (1) and RG23 part (2) alongwith the invoices on which modvat credits had been taken alongwith monthly RT-12 reports. The duty paying documents has also been defaced by the departmental officers while assessing RT-12 return of the appellant unit. In such a circumstance there is no scope of invocation of extended period of limitation, which has been done in this case. The show cause notice has been issued on 02.05.2000 for the period 01.04.1995 to 28.01.1996 - The demand is therefore time bared and not sustainable at all. Retraction of statements - The department is alleging that there is no technical feasibility, infrastructural facilities available with the appellant for use of such input material also taking into the consideration of economic validity of use of such goods - HELD THAT:- . This type of investigation is purely on the basis of imagination and without any legal basis. It is up to the manufacturer to use the goods as input or raw material in the process of manufacture and the department cannot force them to use a particular kind of input / raw material for the manufacture of finished product considering their economic viability, technical feasibility and infrastructural requirement. The department has also accepted the payment of duty on the goods sold by these dealers and hence it cannot deny the availment of modvat credit by the buyer of these goods, if put to use in the manufacturing. Appeal allowed - decided in favor of appellant.
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