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2022 (9) TMI 1120 - AT - Central ExciseCENVAT Credit - sale of entire cement division operations - JSW Steel Ltd. (transferor company) provided any services to the appellants or not - Time limitation - HELD THAT:- The disputed debit notes were issued by debiting the books of account of the appellant, with the narration “being re-imbursement of expenses incurred for procurement of Clinker”. It is evident from such debit notes that when the expenses were incurred for procurement of inputs by M/s. JSW Steel Ltd., such company was not merged or taken over by the appellant. Further, there is also no mention about the specific services, which were procured by the transferor company. Sub-rule (1) Rule 3 of the Cenvat Credit Rules, 2004 permits a manufacturer of final product to take cenvat credit of various duties paid on the inputs or capital goods received in the factory of manufacture of final products and input services by such manufacturer. Since M/s. JSW Steel Ltd. was entirely a separate corporate entity at the time of procurement of inputs, the requirements of the said statutory provisions have not been complied with by the appellants inasmuch as, at the time of procurement of inputs, the transferor company was the beneficiary of such cenvat credit of Central Excise duty or Service Tax paid on the inputs/input services - there are no infirmity in the impugned order passed by the learned Commissioner (Appeals) in denying the cenvat benefit to the appellants. Time limitation - HELD THAT:- Since, there is no element of suppression of facts and the irregular availment of cenvat credit was duly recorded in the books of accounts and audited by the department, the cenvat demand if any, should be confined to the normal period and the extended period of limitation cannot be invoked for effecting recovery of such cenvat credit. In the present case, it is an admitted fact on record that the show cause notice was issued by the department on 21.06.2017, which is much beyond the normal period prescribed under Section 11A of the Central Excise Act, 1944 read with Rule 14 ibid - the appeal filed by the appellants should succeed on the ground of limitation. The appeal is allowed in favour of the appellants on the ground of limitation.
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