TMI Blog2019 (12) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... ant and the sister concern are engaged in the production of identical goods and therefore, it is not the case of the Revenue that both the units have availed the CENVAT credit. It is a situation of revenue neutral because whatever credit has been passed on by the sister concern has been availed by the appellant and in such a situation, it is a settled law that when it is a revenue neutral situation, suppression of facts and mis-declaration cannot be alleged as there is no revenue loss to the Government and no unjust gain to the appellant. Time Limitation - HELD THAT:- Entire demand is also barred by limitation because the show-cause notice was issued in 2017 for the period of September 2013 and there is no willful suppression of facts wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead of availing proportionate and appropriate credit of ₹ 1,41,645/- on the quantity of 4950 kgs of inputs received, the appellant had availed the credit of ₹ 8,63,199/- on the total quantity i.e., 15,750 kgs imported by their sister concern. Hence, the department issued a show-cause notice demanding the excess credit availed of ₹ 7,21,554/- for recovery along with applicable interest and penalty was also proposed to be imposed on the appellant under Section 11AC(1)(a) of the Central Excise Act, 1944 read with Rule 15(2) of CENVAT Credit Rules, 2004. The lower authority after due process of adjudication confirmed the demand of the irregularly availed excess credit along with the applicable interest and imposed equal penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he point of view of exchequer. Further, it is not the case of the department that Sanand unit as well as appellant both have availed CENVAT credit of an amount of ₹ 8,63,199/-. Learned counsel submitted that both the units at Ahmedabad and Bangalore belong to the same company and since there is a common balance sheet for both the units of the company, any CENVAT credit reversed by one unit and passed on to the second unit cannot be said to be resulting in any loss of revenue to the Government. He further submitted that it is a settled proposition of law that a mistake does not amount to suppression of facts with intent to evade payment of duty. That, the mistake of passing of entire credit instead of proportionate credit upon reversin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of fact with intention to evade payment of duty. Further, ER-1 returns filed by the Ahmedabad unit of the appellant for the month of September 2013 clearly shows all the details of CENVAT credit taken and utilized and no demand has been made by the Department against the Ahmedabad Unit. He also submitted that the decision of the Bombay High Court in the case of Sanvijay Rolling Engineering Ltd. vs. CCE, Nagpur: 2018 (11) GSTL 344 (Bom.) wherein the Hon ble High Court has held that when there is revenue neutrality, suppression cannot be alleged and extended period of limitation cannot be invoked. 5. On the other hand, the learned AR defended the impugned order. 6. After considering the submissions of b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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