TMI Blog2019 (2) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... ules, 2004, it can’t be said that those credits are inadmissible. As found from the nature of services electric installation, preparation of earthing system for electricity and insulation of acid container should be regard as “safety measure” for protection of factory and its workers who are engaged in or in relation to the manufacturing process, the same cannot be consider as civil construction or support structure. Extended period of limitation - Held that:- It cannot be said that only because audit party had found some credit availed as inadmissible, suppression of fact is made out. Further it is not established that appellant had any malafide intention to suppress its duty liability from the department - extended period cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eline fabrication work, EOU crane, electrical installation, earthling connection, insulation of acid plant etc. were done in relation to the manufacture of final products and those are eligible for CENVAT credit in terms of Rule 2(l) of CENVAT Credit Rules, 2004. In placing reliance on the judicial decision reported in 2009 (16) STR 154 (T) in the case of Aditya College of Competitive Exam that was upheld by Hon'ble Andhra Pradesh High Court as reported in 2016 (45) STR J57 (AP), he further argued that invocation of extended period, without any conscious or deliberate suppression of facts or mis-statement, is not sustainable when the same was based on audit objection and since there is possibility of difference of opinion among the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gality of such denial in respect of six services. Taking Exit Interview contended by the Auditor on 27.06.2015 wherein it has been allegedly admitted by the appellant that they had utilised those services in relation to civil works and fabrication of support to capital goods and hence credit was not admissible to them. Paragraph no. 5 of the show-cause notice indicates that the said services had been utilised in laying of foundation or making structures for support of capital goods as appears from the work undertaken. Basing on these two points, finding have been made in the Order-in-Original and Order-in-Appeal that appellant had admitted about its knowledge concerning inadmissibility of CENVAT credit and without the same being unearthed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easure for protection of factory and its workers who are engaged in or in relation to the manufacturing process, the same cannot be consider as civil construction or support structure. 6. So far as audit is concern now coming to the statutory audit procedure, the purpose of audit, as available in the Manual published by the Institute of Chartered Accountants of India in respect of EA audit and CERA audit under Chapter 17 is that the idea behind such conduct of verification is to reasonably ensure that no amount, which under the central excise law is chargeable as duty, escapes taxation and the process of verification is always carried out in the presence of assessee and in the process, the auditor is required to discuss the matter with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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