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2021 (7) TMI 811 - AT - Central ExciseCENVAT Credit - common input services on trading activity / traded goods - non-maintenance of separate accounts under Rule 6(2) of Cenvat Credit Rules - non-filing of declaration as contemplated in Rule 6 (3A) - suppression of facts or not - extended period of limitation - HELD THAT:- The Tribunal in the case of Dalmia Bharat Sugar & Industries Ltd., vs. CCE [2017 (10) TMI 1027 - CESTAT NEW DELHI] has followed the decision in the case of Mercedes Benz India Pvt Ltd [2015 (8) TMI 24 - CESTAT MUMBAI], wherein it was observed that the Commissioner is not justified in insisting that appellant reverse cenvat credit in terms of Rule 6(3)(i) of Cenvat Credit Rules. The claim of the appellant is that they have already reversed on proportionate basis, the cenvat credit along with interest amount payable in terms of Rule 6(3A). However, the Department is entitled to verify whether reversal of the amount already made by the appellant satisfies the requirement of Rule 6(3)(ii) notwithstanding the fact that the procedural formalities have not been satisfied. Time Limitation - suppression of facts or not - HELD THAT:- The appellants have been issued show cause notices for earlier periods on identical issue. The appellants have disclosed the credit availed in the returns filed by them. They had submitted all the documents called for by the department and I do not find any evidence to saddle the appellants with willful suppression of facts with intention to evade payment of duty - the appellants had been reversing the credit availed on common input services and informed the department whenever the details were asked for. Thus the department was fully aware that the appellants were conducting trading activity - the demand raised invoking the extended period is without any factual or legal basis. The appeal succeeds on limitation also. The impugned order is set aside both on merits as well as on limitation - Appeal allowed - decided in favor of appellant.
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