Limitation for Modvat credit demand failed where regular RT-12 disclosures and genuine documents negated suppression

Regular filing of RT-12 returns with supporting documents, accepted by the Revenue, defeated the allegation of suppression of material facts for invoking the extended period in relation to Modvat credit. As the documents supporting the credit were not shown to be non-genuine, the basis for alleging intent to evade duty was not made out, and the demand was treated as time-barred. The impugned order was set aside and the appeal was allowed.

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Issues: Whether the demand was barred by limitation and whether the extended period could be invoked on the allegation of suppression of material facts in relation to availment of Modvat credit.

Analysis: The appellants had regularly filed RT-12 returns with copies of the relevant documents, and this was accepted by the Revenue. There was no allegation that the documents relied upon for taking credit were not genuine. In these circumstances, the basis for alleging suppression of material facts to evade duty was not made out.

Conclusion: The demand was held to be time-barred, the impugned order was set aside, and the appeal was allowed.

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