Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (8) TMI 276 - AT - Central ExciseDemand – limitation - appellant is engaged in the manufacture of instrument transformers. They were availing the benefit of Cenvat credit on the welding electrodes. The said welding electrodes were further sold to their contractors/job workers, who were doing the operations in their factory itself. The credit was not reversed and no duty was paid on the welding electrodes. – Hence, demand was raised by invoking longer period of limitation - Apart from the fact that no evidence as regards any suppression or misstatement on the part of the appellant stand discussed by the Commissioner (Appeals), I find that the Assistant Commissioner had dropped the demand on merits. This fact by itself leads to one conclusion that the issue is capable of two different interpretations. If the Adjudicating Officer could interpret the same in the favour of the assessee, the appellant’s submission that they were under a bona fide belief that they were entitled to credit, cannot be rejected. Inasmuch as admittedly the demand stands raised after a period of one year from the relevant date, I hold that the same is barred by limitation. The impugned order is accordingly set aside and appeal allowed
|