2016 (6) TMI 826

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....redit facility of inputs and capital goods. A show cause notice dated 26-01-2011 was issued for the period October, 2008 to June, 2009 alleging irregular availment of Cenvat credit on MS angles, HR Plates, MS channels etc. as capital goods to the tune of Rs. 19,24,184/-. The appellants defended the show cause raising the ground of limitation as well as on merits. After due process of law, the original authority confirmed the demand along with interest and imposed equal amount of penalty. In appeal, the Commissioner (Appeal) vide order impugned herein upheld the order of the original authority. Hence this appeal. 2. The learned counsel for the appellant advanced his arguments both on merits as well as on the ground of limitation. With reg....

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....he show cause notice has been issued invoking larger period basing upon the decision of Larger Bench of Tribunal in Vandana Global Ltd case 2010(253) ELT 440(Tri-LB). He submitted that the amendment brought w.e.f. 07-07-2009 has prospective application only, and that therefore, credit is admissible. To fortify his arguments, he relied upon the judgment laid in Mundra Ports & SEZ Ltd Vs CCE 2014(39) STR 726(Guj), CCE,Jaipur Vs Rajasthan Spinning and Weaving Mills Ltd. 2010(255) ELT 481(SC), India Cements Ltd Vs Cestat Chennai 2015(321) ELT 209(Mad). 4. Against this, the learned AR, Shri V.Ramakrishna supported the findings in the impugned order. He submitted that though the appellant has produced photographs and certificate of Chartered e....

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....s upon ER-1 returns and the information furnished by appellant. The appellant has also produced photographs and certificate issued by chartered engineer as to the use of MS items in fabrication of capital goods, and these in turn are used for manufacturing finished product. In CCE Noida Vs Accurate Chemical Industries 2014(310) ELT 441(All) the Hon'ble High Court in similar set of facts was of the view that when assessee duly filed ER-1 returns, the jurisdictional Range Officer is required to carryout scrutiny of the returns. If this had been done, the short payment would have come to light. In such circumstances, extended period cannot be invoked as there is no wilful suppression or collusion with intent to evade payment of duty. 8. The....

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....xtiles Ltd. V. Commissioner of Central Excise, Raipur  2013(288) ELT 161 (SC), the Hon'ble Supreme court held the burden of proving any form of mala fide lies on the person who is alleging it. Such allegations demand prove of order of credibility. Considering the above position of law, we find that in the present case, the demand for extended period cannot be sustained. The ER-1 returns for the period starting from June, 2007 were available with the department and no reason is forthcoming for non-scrutiny or delayed enquiry for more than two years. The Tribunal in the case of Accurate Chemicals Industries V. Commr. Of C.Ex., Noida  2014(300) ELT 451 (Tribunal-Delhi) examined the scope of scrutiny of ER-1 returns by the departmenta....