TaxTMI 
TaxTMI 
2016 (10) TMI 107
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....e Tariff Act, 1985. On 6th January, 2007 audit party visiting the unit of appellant observed that appellant has removed shrink packing machine which was received by them on 14.3.2005 from their another unit on which Cenvat credit as capital goods was availed was removed from their unit on 21.03.2006 to their own third unit without reversal of Cenvat credit. In reply to the audit objection through their letter dated 25/10/2007 appellant informed the Superintendent of Central Excise having jurisdiction over their unit that it has been held in the case of Madura Coats Pvt. Ltd. Vs. Commissioner of Central Excise, Tirunelveli reported at 2005 (190) E.L.T. 450 (Tri.-Bang.) by Hon'ble Tribunal that when any machinery is put to use....
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....mmissioner (Appeals) who through impugned Order-in-Appeal rejected the appeal and appellant had carried the matter before this Tribunal. 3. The grounds of appeal are that during the relevant period there were large number of pronouncements including one in the case of Madura Coats Pvt. Ltd wherein it was held that if the capital goods are put to use and then cleared then Cenvat credit is not required to the reversed. 4. The Id. Counsel for the appellant has argued that a lot of debate has taken place over the years about the interpretation of the phrase "As such" used in the said Rules. He further argued that audit was conducted on 06/01/2007 and show cause notice for extended period was issued on 23.8.2008. He has argued that through let....
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....ion of fact, fraud, mis-statement, etc. committed by the assessee. Mere act of omission by the assessee without there being any intention to evade payment of tax cannot be a ground to invoke the proviso to Section 11A of the Act, especially when the evasion came to the notice of the department when the audit was conducted in the month of March, 2010." 5. They have further submitted that as per the law laid down by Hon'ble High Court of Allahabad demand has to be raised within one year from the dated of audit and in case extended period is to be invoked then intention to evade payment of duty has to be established. The show cause notice has made reference to letter dated 25.10.2007, wherein it was brought to the notice of the department....