TMI Blog2013 (3) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of credit availed by them in their monthly returns, it cannot be said that there was any positive act of suppression on mis-statement on their part. The respondent had availed cenvat credit on various input services on the bonafide belief that the same are admissible to them under the definition of inputs services contained in Rule 2(l) of Cenvat Credit Rules, 2004 and declared the quantum of cenvat credit in the ER I Returns. The respondent disputed the allegation of suppression and the same is neither admitted nor established. Once ER-I Return is filed, even though it is filed under self-assessment system, the officers are supposed to scrutinize the same. Just because the respondent had taken Cenvat credit in respect of certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f limitation. Hence, Revenue is in appeal. 3. The ld. A.R. for the Revenue has submitted that the respondent had availed cenvat credit wrongly on various input service, the details of such input services were not disclosed by them in their monthly ER-1 Returns filed with the department. The contention of the Ld. A.R is that non-disclosure of details of such input services in their returns would amount to suppression of facts and accordingly, extended period of limitation has been rightly invoked and confirmed by the adjudicating authority. In support, he has relied upon the judgement of the Hon ble Gujarat High Court in the case of Commissioner of Central Excise, Surat I Vs. Neminath Fabrics Pvt. Ltd. reported in 2010 (256) ELT 369 (Guj.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computation of the period of one year or five years from the date of detection of fraud, collusion etc. as prescribed under Section11A(1) of CEA,1944. The principle of law laid down by the Hon ble Gujarat High Court in the said case is not applicable to the present circumstances as in that case the Hon ble High Court was confronted with the question whether show-cause notice was to be issued within a period of one year from the date of knowledge of suppression of facts etc. or to be issued within five years from the relevant date specified in sub-section (3) of Section 11A of the said Act. In that context, the Hon ble High Court has held that the concept of date of knowledge cannot be imported into the proviso to Section 11A (1) of the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad observed as under : 10. In these cases, there is no dispute about the fact that the ER-I Returns had disclosed the availment of Cenvat Credit but since there is no requirement for enclosing the invoices or giving the details of such credit or neither such details were given nor the invoices were enclosed. However, once ER-I Return is filed, even though it is filed under self-assessment system, the officers are supposed to scrutinize the same. Just because the respondent had taken Cenvat credit in respect of certain input services, which according to the Department was not admissible to them, it cannot be concluded that the credit had been taken knowing very well that the same was not admissible, unless there is some evidence in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation of time limit of one year or five years prescribed under the provisions of Section 11A (1) of CEA,1944 after detection of suppression of facts, misstatement etc. while issuing Show Cause Notice for recovery of duty. In that case, suppression has been admitted and it has been held that once suppression is admitted or established, the normal period of one year prescribed under Section 11A(1) for recovery of duty be substituted with five years irrespective of the date of knowledge of such suppression. But, in the present case, the respondent had availed cenvat credit on various input services on the bonafide belief that the same are admissible to them under the definition of inputs services contained in Rule 2(l) of Cenvat Credit Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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