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2020 (6) TMI 355 - AT - Central ExciseExtended period of Limitation - suppression of facts or not - SCN based on change of opinion of Department - As the appellant was required to manufacture finished goods for supply to Railways out of scrap supplied by Railways, it appeared to Revenue that the inputs (copper rod) were never used in the manufacture of final product and the credit have been taken on the basis of documents only without receipt of inputs - HELD THAT:- The appellant have maintained proper books of accounts and records of their transactions. Admittedly, the whole demand is for the extended period of limitation. The Revenue has only made a bald allegation of suppression of facts, alleging the non disclosure of actual sale value of the scrap received from the Railways. There is no obligation cast on the appellant to intimate the Department on each and every transaction. The appellant have filed regular returns with the Department and have maintained proper records. Further, the appellant have obtained statement of “cost of production‟ duly certified by the Cost Accountant, who have considered various elements of cost like raw material, salary and wages, direct expenses and work overheads, quality control cost, administrative overheads, packing cost etc. as required under the Central Excise Valuation Rules read with CAS-4 guidelines (Cost Accounting Standards) as adopted by the Government of India for Central Excise purposes. The elements of suppression, mis-statement, fraud, etc. are not coming out from the facts and circumstances. The show cause notice is only based on change of opinion of Department - the extended period of limitation is not attracted and thus the show cause notice is not maintainable. Appeal allowed - decided in favor of appellant.
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