2017 (7) TMI 932

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....assessee is engaged in the manufacture of Caustic Soda, Liquid Chlorine, Hydrochloric Acid, Phosphoric Acid, Sodium Hypo Chlorate and Kestra products falling under Chapter 28 and 39 of the Central Excise Tariff Act, 1985. During the audit of the records of the assessee, the audit party noticed that the assessee has cleared the finished goods through consignment agents viz., M/s. Acid India Ltd., M/s. Padma Agencies and other branches scattered all over India. It was observed that the assessee had availed cenvat credit on input services on the invoices issued by these consignment agents and the same appeared to be not correct as per Rule 2(l) of the Cenvat Credit Rules, 2004. On these allegations a show-cause notice dated 18.04.2013 was issu....

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....ded period of limitation cannot be invoked because the issue of entitlement of credit on input services provided by the commission agent was pointed out in the audit for the period April 2008 to August 2009 in the audit report dated 08.12.2009. However a show-cause notice was issued only on 18.04.2013 after expiry of more than four years from the date of the audit. She further submitted that the demand pertaining to April 2008 to March 2012 has rightly been set aside as barred by limitation. She further submitted that the longer period of limitation is not invocable when the facts are within the knowledge of the Department and for this submission, she relied upon the following decisions: a) Wadpack Pvt. Ltd. Vs. CCE, Bangalore - 2013 (29....

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....ion includes services by way of sale of dutiable goods on commission basis and this explanation is technical in nature and is applicable retrospectively and for this submission, she relied upon the decision in the case of Essar Steels India Ltd. cited supra. She further submitted that the input service credit is allowed on services of commission agent who enables sale of goods on commission basis and for this she relied upon the following decisions: a) Commissioner V. Ambika Overseas - 2012 (25) S.T.R 348 (P&H) b) J.P.P. Mills Pvt. Ltd. V. CCE, Salem - 2012 (46) S.T.R 317 (Tri.-Chennai) c) Commissioner V. Essar Steels India Ltd Vs. CCE & ST, Surat - 2016 (335) E.L.T. 660 (Tri. -Ahmd.) d) Wadpack Pvt. Ltd. Vs. CCE, Bangalore - 20....