Customs Tribunal Upheld in Dismissing Appeal on Inadmissible Credit under DEPB Scheme

The Court dismissed the appeal against the order of the Customs, Excise and Service Tax Appellate Tribunal regarding inadmissible credit on capital goods imported under the DEPB Scheme. The Tribunal's decision was upheld, stating that the show cause notice was issued beyond the limitation period, with no suppression of facts found. The Court agreed that no substantial question of law arose, affirming the Tribunal's findings and dismissing the appeal.

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Issues involved: Appeal against the order of Customs, Excise and Service Tax Appellate Tribunal rejecting appellant's appeal regarding inadmissible credit on capital goods imported under DEPB Scheme.

Summary:

Issue 1: Limitation for issuance of show cause notice

The appellant appealed against the order rejecting their appeal on the grounds of suppression of material fact and limitation for issuance of show cause notice. The Adjudicating Authority confirmed the demand, but the Commissioner (Appeals) set it aside citing limitation. The appellant argued that the show cause notice was within the limitation period of five years for suppression of facts. However, the Tribunal held that there was no suppression of fact, relying on a decision of the Gujarat High Court. The Court agreed with the Tribunal's finding, stating that no substantial question of law arises as the show cause notice was issued beyond the limitation period of one year.

In conclusion, the Court dismissed the appeal, affirming the order under appeal.

Keywords: Customs, Excise and Service Tax Appellate Tribunal, inadmissible credit, DEPB Scheme, show cause notice, limitation, suppression of fact, Central Excise Act, finding of fact, Gujarat High Court decision, substantial question of law, dismissal of appeal.

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