2018 (5) TMI 1195

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....meters for energy/static, Information Technology Software Harmonic Filter Systems falling under chapter 85/90 of CETA, 1985 and are availing CENVAT credit on capital goods, inputs or input services under the CENVAT Credit Rules, 2004. During the course of verification of the records, it was noticed that the appellants are undertaking trading activity as a first stage dealer from the same premises where manufacturing activities are also taken and are using common input services both for manufacturing of dutiable goods and the traded goods. Accordingly a show-cause notice dt. 26/04/2013 was issued and after following the due process, the adjudicating authority confirmed the demand along with interest and penalty, vide Order-in-Original dt. 20....

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.... by limitation as there was no intention to evade payment of duty. He further submitted that the issue of whether proportionate reversal should be made on trading or not has been debatable issue and the appellant has been served periodical show-cause notices on the issue of eligibility to credit. He also submitted that when the demand is based on the retrospective amendment, extended period cannot be invoked. 6.  On the other hand, the learned AR defended the impugned order and submitted that the larger period has rightly been invoked as the appellant has suppressed the facts from the Department and it was detected during the audit. He further submitted that the Hon'ble High Court of Madras in the case of FL Smidth Ltd. cited su....

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....of this Tribunal in the case of HCL Infosystems has observed in para 12 as under:- 12. Show cause notices in both cases were issued invoking the extended period of limitation on the ground that the assessee had deliberately failed to disclose availment of cenvat credit utilized for trading which clearly does not amount to input service used for providing taxable or exempted services; and since trading would not in any event be considered an exempted service. Ld. Counsel for the appellant contends that this is a bonafide interpretational error on the part of the assessee and therefore invocation of the extended period is not justifiable. This contention of the assessee does not merit acceptance. Till the fiction was introduced that tradin....