2016 (9) TMI 284

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....ds and input services. A show cause notice dated 15-11-2011 was issued to appellants alleging that during the period April, 2007 to April, 2010 appellants had irregularly availed CENVAT credit of Rs. 6,04,320/- in respect of Mono Block Concrete sleepers(MBC) under the category of capital goods and that these items are not connected in or in relation to the process of manufacture of finished goods i.e. cement. 3. The appellants defended the show cause notice both on merits as well as on the ground of limitation. They filed detailed reply explaining the use of MBC sleepers in the factory. MBC sleepers are used for laying railway line which is used for transportation of input materials inside the factory and to carry finished cement outside....

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....l Order No.52441/2015 dated 22-07-2015 has held that concrete sleepers used for laying railway line within the factory premises is eligible for credit. On the issue of limitation, the learned consultant submitted that the disputed period is 1/2008 to 4/2009 and the show cause notice is dated 15-11-2011. The extended period of 5 years can be invoked only if there is fraud, collusion, willful suppression of facts etc. In normal circumstances, the SCN has to be issued within one year from the relevant date. That the appellant has disclosed all the details of availment of credit in ER-1 returns as per statutory requirement. As there is no suppression, the extended period is not invokable. He pleaded that the appeal may be allowed. 5. Against....

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....ents, I hold that the appellant has established a case on merits and that credit is admissible on MBC sleepers. 7. The appellant has also argued on the issue of limitation. They had disclosed the availment of credit in the ER-1 returns. The show cause notice is issued basing on the judgment laid in Vandana Global Ltd case(supra). There is no case for revenue that the appellant has not disclosed the credit details in their accounts or in ER-1 returns. They believed that credit is admissible and maintained proper statutory records reflecting the details of credit. On such score, it cannot be alleged that the appellant has willfully suppressed facts with intent to evade payment of duty. The Hon'ble Apex Court in Uniworth Textiles Ltd Vs CCE....