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2018 (9) TMI 1712 - AT - Central ExciseCENVAT Credit - fake invoices - Department was of the view that MS Wires have not been the material supplied to the appellants and that only cenvatable invoices giving the description as 'MS Wires' were issued - invoices are dated Mar. '05, whereas, the investigation was conducted in 2006 and SCN issued only in Mar. 2010 - suppression of facts or not - invocation of extended period of limitation. Held that:- After such a long gap of five years, apart from the statements and these three invoices, the department has not been able to put forward any evidence to establish the allegations raised in the show-cause notice. There is no allegation that suppliers/dealers are not registered with the department. The allegation is that these dealers procure non-duty paid scrap locally and also from manufacturers by paying duty - There is no evidence put forward by the department to show that the appellants have procured such large quantities of inputs locally. Neither buyers nor transporters have been examined. There is nothing brought out from evidences as to how the appellants have been able to manufacture the finished products if they were not receiving the goods as per the cenvated invoices. It is settled law that statements cannot be relied upon without examining the witnesses under section 9D of the Central Excise Act. Mere statements cannot be a ground for confirming the demand in a serious charge of clandestine availment of credit. The Department has failed to establish case alleged in the SCN - appeal allowed - decided in favor of appellant.
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