2017 (5) TMI 1292

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.... inputs. They availed input credit to the tune of Rs. 16,18,888/- on molasses which was supplied to them by M/s. Imcola Exports Ltd. (Imcola, for short) who had procured the goods for exporting under bond. As Imcola could not export the same, they obtained permission from the proper officer to clear the goods in open market on payment of appropriate Central Excise duty. The duty was thus paid in accordance with the instructions of the proper officer and the goods were cleared to the appellant. The appellant availed credit on the document which is an invoice issued by Imcola and a copy of the challan (GAR-7) evidencing the payment of duty to Imcola. It is also supported by a delivery challan issued by the transporter (M/s. MVR Transporters, ....

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....mber 2007 and the same was disclosed in their ER1 returns filed for the said month. Along with ER1 returns, the appellant had also filed RG23A Part-II in which, appellant had clearly mentioned that credit taken on molasses obtained from M/s. Imcola Exports Ltd., Vizag as permission given . The show-cause notice has been issued on 27/04/2011 invoking extended period of limitation alleging suppression of facts with intent to evade payment of duty. The appellant has disclosed the amount of credit availed and the document on which credit was availed in their accounts and ER1 returns and that there is no evidence to attribute suppression. The show-cause notice is therefore time barred. When the payment of Central Excise duty and the utilisation ....

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.... with regard to the duty paid on the inputs. So also there is no dispute with regard to use of the inputs in the final products. The credit is sought to be denied alleging that the documents on which credit is availed is not proper. Rule 9 of CENVAT Credit Rules, 2004 prescribes the documents on which credit can be availed. In many judgments, it has been analysed that the purpose of this Rule is for verification whether duty is paid. It also gives a uniformity to the documents on which credit can be availed. While specifying the documents, it will not be possible for the legislature to envisage all types of transactions in which the duty is paid and credit is to be availed by an assessee. Thus in the case of CCE, Goa Vs. Essel Propack [2015....