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2023 (5) TMI 438 - HC - Central Excise
Wrongful abatement of MODVAT credit - demand barred by time limitation or not - whether the quantum was justified in allowing appeal without ascertaining the factual position for actual utilisation of input appropriate to be charged to the electric induction furnace?
HELD THAT:- After noting the legal requirement the Tribunal examined the factual position and pointed out that there is no allegation of misstatement or suppression made by the department at any stage of the proceedings. More particularly when all the documents were produced by the assessee examined by the revenue and thereafter the final assessment was made. Therefore, the Tribunal held that extended period of limitation could not have been invoked by the revenue and that the entire demand is barred by limitation. The Tribunal was of the view that while referring the matter to this Court referred the question as to whether Tribunal was justified in allowing the appeal without ascertaining factual position of actual utilisation.
The question of limitation is a legal issue, which is required to be decided taking note of the relevant facts. If on facts, the Tribunal had come to the conclusion that the demand was barred by limitation nothing prevented the Tribunal from granting relief to the assessee on the said ground and there would be no occasion to examine the merits of the matter as such the exercise will be a sheer academic exercise. Thus, the Tribunal rightly took note of the undisputed fact that held that extended period of limitation could not be invoked.
There are no ground to interfere with the order passed by the Tribunal - appeal dismissed.