TMI Blog2017 (8) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... in this regard. Cumulatively, considering all these facts, there cannot be any doubt that to escape from the notice of the department, the appellant had taken credit of the service tax paid on various input services, but intentionally the declared it under the heading input in the relevant ST-3 returns. Therefore, the inadmissible credit has been availed by mis-declaration of facts, hence, recoverable from them with interest. As far as carrying out audit on the records and no discrepancies was noticed by the Department, therefore larger period of limitation cannot be invoked. No evidence has been brought on record to show that the visiting audit party had been specifically made aware of the fact of availing of credit on input services w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce was issued for recovery of the credit with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by the said order, the appellant filed appeal before Commissioner (Appeals), who in turn, rejected the appeal. Hence, the present appeal. 3. It is the contention of the Ld. Advocate for the appellant that the demand is barred by limitation, inasmuch as, during the course of first audit conducted in January 2006 even though all records were placed before visiting audit officers, the alleged irregular availment of credit was not pointed out, hence, extended period of limitation cannot be invoked against them. Further, he has submitted that the total amount of credit availed by them had been duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly because the audit officers could not detect during the first audit, the availment and utilization of credit during the relevant period, by suppression and mis-declaration of the fact cannot be a ground for not invoking larger period of limitation. In support of his contention that mere conduct of audit in the premises itself is not sufficient to claim that there was no suppression of fact, the Ld. AR for the Revenue referred to the judgment of Hon ble Bombay High Court in Tigrania Metal Steel Industries P. Ltd. Vs CCE - 2015 (326) ELT 650 (Bom.). 5. Heard both the sides and perused the records. 6. The short question for determination in the present case is: whether the appellant had availed inadmissible credit of ₹ 16,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;. Needless to mention inputs and input services are separate categories under which cenvat credit is admissible under the Cenvat Credit Rules, 2004. No plausible and convincing explanation has been furnished in this regard. Cumulatively, considering all these facts, there cannot be any doubt that to escape from the notice of the department, the appellant had taken credit of the service tax paid on various input services, but intentionally the declared it under the heading input in the relevant ST-3 returns. Therefore, the inadmissible credit has been availed by mis-declaration of facts, hence, recoverable from them with interest. As far as carrying out audit on the records and no discrepancies was noticed by the Department, therefore larg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord to show that the invoices were initialed or signed by any member of the audit party in token of having gone through. Therefore, mere visit to the factory would not suffice in the given facts and circumstances nor could any reliance be placed upon the communications under which the audit party intimated the Assessee that they would visit the premises and the record should be kept ready. 12. In the circumstances, we do not think that the Assessee can derive any benefit by mere filing of the classification lists or any endorsement thereon. Here the issue was whether the audit party was given an opportunity to inspect the materials and which came to be claimed as evidence of dutiable inputs. It is the Assessee who had relied upon s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
