2009 (7) TMI 963 - AT - Central Excise

CESTAT rules in favor of Revenue in limitation dispute over filing date for reactive dyes case

The appellate tribunal CESTAT, Ahmedabad, in a case involving the Revenue and a manufacturer of reactive dyes, ruled in favor of the Revenue. The tribunal ... Demand - Limitation - Relevant date In the appellate tribunal CESTAT, Ahmedabad case with citation 2009 (7) TMI 963, the appellant, the Revenue, filed an appeal against an order by the Commissioner (Appeals). The respondent, engaged in the manufacture of reactive dyes, availed Cenvat Credit on inputs used in manufacturing final products during 2005-2006, and opted for an exemption with a balance of Cenvat Credit on inputs and finished goods as of 1-4-06. The appellants transferred this credit to a separate account for exports and utilized it for duty on exported goods. A show cause notice was issued on 5-10-07 proposing recovery of the credit. The Commissioner (Appeals) held against the respondent on merit but extended the benefit of limitation, considering 18-9-06 as the relevant date for limitation purposes. The Revenue appealed the decision, arguing that the relevant date should be the date the ER-1 was filed, which was 9-10-06. The tribunal agreed with the Revenue, setting aside the impugned order and allowing the Revenue's appeal. The decision was pronounced on 3-7-2009.