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2016 (11) TMI 476 - CESTAT NEW DELHIRepayment of Cenvat credit utilised in contravention of Rules 3 and 4 of the Cenvat Credit Rules, 2004 - credits have been used for making payments for the finished products which have not been manufactured in the assessee's factory - job work - Held that: - the assessee has admittedly got the goods manufactured on job work basis in its sister concern in terms of Notification No.214/86-CE. As per the definition in 2(f) of the Central Excise Act, 1994, the term manufacturer will include any person who gets goods manufactured outside factory. On this ground also the demand for reversal of Cenvat credit is not justified. Limitation bar - Held that: - the demand has been raised by mechanically invoking the proviso to Section 11A of the Act. I find no discussion or even a murmur of any evidence or allegation that the respondent has indulged in the act of suppression of facts or wilful mis-statement, contravention to the provision of the said Rule. In the absence of any of the ingredients, there can be no justification to invoke the extended period of time for issuing demand. Respondent has relied on many case laws including the decision of the Hon'ble Supreme Court in the case of CCE Vs. Chemphar Drugs & Liniments [1989 (2) TMI 116 - SUPREME COURT OF INDIA]. In the said decision Hon'ble Supreme Court categorically held that conscious or deliberate withholding of information by manufacturer is necessary to invoke larger limitation of five years. In the present case, the Department has acquired full knowledge about the facts of the case at the time of visit of the factory by the officers on 17.03.2006. Consequently, the Show Cause Notice, if any, ought to have been issued within a period of one year from that date. The Show Cause Notice stands issued on 09.03.2009. Appeal allowed - decided in favor of appellant.
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