2017 (9) TMI 613

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....ation was conducted at the end of supplier M/s. Mahabir Prasad & Co. who were manipulating their records. On the basis of this investigation, a show cause notice was issued to M/s. Mahabir Prasad & Co. on 16.7.96 to demand duty against them and imposing penalty on the appellant as well. On the basis of said investigation another show cause notice was issued to the appellant on 13.5.99 to deny cenvat credit on the invoices issued by M/s. Mahabir Prasad & Co. who were issuing the invoices without goods. Therefore, cenvat credit is not entitled to the appellant and the said show cause notice has been issued by invoking the extended period of limitation. Matter was adjudicated, cenvat credit was denied and consequently duty was demanded from th....

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..../s. Mahabir Prasad & Co. and it was alleged that M/s. Mahabir Prasad & Co. were indulged in manipulating their accounts. On the basis of that investigation, a show cause notice was issued to the appellant for imposition of penalty on the basis of allegations made against M/s. Mahabir Prasad & Co. In the circumstances, subsequent show cause notice cannot be issued to the appellant by invoking the extended period of limitation to deny the cenvat credit. Same view was taken by the Tribunal in the case of National Steel (supra) wherein this Tribunal has observed as under: - "6. The Revenue were aware during 1996 that one of the recipient of wrong credit transferred by M/s. Mahabir Prasad & Co. This fact is borne out from the show cause notice ....