Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 810 - AT - Central ExciseReversal of CENVAT Credit - certain activities carried out by it on imported China pipes and cleared after making payment of excise duty - process amounting to manufacture or trading of goods - Rule 6(3) of the CCR, 2004 - time limitation - HELD THAT:- The issue is no longer res integra after the judgment of the Tribunal in the case of SUYASH AUTO-PRESS COMPONENTS & ASSEMBLIES P. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-III [2018 (5) TMI 208 - CESTAT MUMBAI] where it was held that the removal of input under Rule 3(5) was made admittedly on payment of duty. Therefore, there is no case of trading activity which is an exempted service. Accordingly, there is no application of Rule 6(3) of the Cenvat Credit Rules, 2004. In the instant case of the Appellant also, there is no dispute that the goods where cleared after payment of excise duty and thus once the duty has been paid on such goods and accepted by the department, the same cannot be treated as a trading activity to trigger the mis chive under Rule 6(3) of the CCR, 2004. Extended period of limitation - HELD THAT:- Further, it is also on record that the Appellant’s activities were known to the department since inception as earlier also a SCN dated 01/04/2015 was served on the Appellants for recovery of Cenvat credit availed on imported china pipes which were cleared after payment of duty. Thus, the current proceedings are on the same foot. By treating the activities of the Appellant as trading of goods cannot be sustained by invoking extended period of limitation as the department was very well in knowledge of the entire proceedings since inception. Thus, the demand cannot sustain on limitation ground as well. Appeal allowed - decided in favor of appellant.
|