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of <h1>Tribunal rules in favor of appellant on cenvat credit eligibility and limitation issues.</h1> <h3>M/s. Kakda Rolling Mills Versus C.C.E. & S.T., Bhopal</h3> M/s. Kakda Rolling Mills Versus C.C.E. & S.T., Bhopal - TMI Issues:1. Eligibility to take cenvat credit on disputed goods as components of capital goods2. Bar of limitation for SCN issued in 2012 covering the period from August 2007 to August 2009Analysis:1. The appellant, engaged in manufacturing Iron and Steel products, availed cenvat credit on goods denied by the Central Excise Department. The appellant argued that the disputed goods are inputs for manufacturing capital goods of Chapter 84 of CETA within the factory. The Ld. Advocate contended that the SCN issued beyond one year from relevant date is time-barred under Section 11A. Citing judgments, the Ld. Advocate argued against invoking the extended period for duty demand and penalty without suppression, misstatement, collusion, or fraud. The Tribunal found the disputed goods used for construction and repair activities, qualifying as inputs for cenvat credit. The appellant had disclosed cenvat particulars to the Department, making the extended limitation period inapplicable.2. The Revenue respondent argued that the appellant did not provide details of capital goods using the disputed items, justifying the SCN issued under the extended limitation period. Citing tribunal decisions, the Revenue supported the demand confirmed by authorities. The Tribunal considered the activities undertaken by the appellant, where the disputed goods were used for construction and repair purposes related to the steel plant purchased in 2007. The Tribunal found that the disputed goods qualified as inputs for cenvat credit, as disclosed in the appellant's records and returns. The Tribunal concluded that the SCN issued beyond the limitation period was not maintainable, setting aside the impugned order and allowing the appeal on both merits and limitation.This judgment highlights the importance of correctly categorizing goods for cenvat credit eligibility and the relevance of timely issuance of SCNs within the limitation period. The Tribunal's decision was based on the appellant's activities, disclosure of cenvat particulars, and the absence of suppression or fraud, emphasizing compliance and transparency in availing credits and dealing with tax authorities.
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