Tribunal Allows Appeal Due to Time-Barred Show Cause Notice

The Tribunal allowed the appeal in a case where Cenvat Credit disallowance was based on invoices issued in the name of a different unit, considering it a clerical error. The show cause notice, issued after 12 months invoking the extended period, was deemed time-barred as conditions for extension were not met. Consequently, the impugned order was set aside, granting the appellants any consequential relief as per the law. The Tribunal held that the show cause notice was time-barred due to the absence of necessary conditions for extending the limitation period, resulting in the appeal being allowed and the impugned order being set aside.

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Issues:
1. Disallowance of Cenvat Credit based on invoices issued in the name of a different unit.
2. Time limitation for invoking extended period in the show cause notice.

Analysis:
1. The case involved a dispute where Unit-I of a company had taken credit based on invoices issued in the name of Unit-II. The Revenue objected to this, considering both units as separate taxable entities. The appellant reversed the credit upon objection but faced a show cause notice proposing disallowance of the credit, along with interest and penalty. The Order-in-Original confirmed the demand and penalty. The Tribunal noted that there was no dispute regarding the duty-paid inputs received, with the issue being the unit mentioned on the invoices and the credit taken by the other unit. The Tribunal considered this a clerical error and held that the show cause notice, issued after 12 months invoking extended period, was time-barred as the conditions for invoking the extended period were not met. Consequently, the appeal was allowed, and the impugned order was set aside, granting the appellants any consequential relief as per the law.

2. The Tribunal observed that the show cause notice, issued more than 12 months after the objection by the Central Excise authority, invoked the extended period of limitation. However, the Tribunal found that the conditions required for invoking the extended period were not present in this case. As a result, the Tribunal held that the show cause notice was time-barred due to the absence of the necessary conditions for extending the limitation period. Therefore, the appeal was allowed on this ground, setting aside the impugned order and entitling the appellants to any consequential relief as per the law.

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