2019 (4) TMI 1000

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.... are that the assessee availed cenvat credit of Rs. 44,23,305/- on capital goods used in fabrication of machinery. The assessee made substantial expansion of plant and machinery w.e.f. 08.11.2004, and availed area based exemption under Notification No. 50/2003-CE dated 10.06.2003 as amended. On an audit being conducted, during the period 12.12.2005 to 16.12.2005, certain remarks were made regarding availment of cenvat credit by the assessee, to which the assessee submitted its reply. 3. Before the adjudicating authority, the assessee contended that admissibility of cenvat credit should be judged with reference to the date of receipt of goods/capital goods; on the date of receipt of capital goods i.e. during the period April, 2004 to Octo....

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....d in law; and the transaction had been properly recorded in the ER-I return filed from time to time. The CESTAT was of the view that the issues raised in the appeal were squarely covered by its earlier order in Spenta International Vs. CCE : 2007 (216) ELT 133. The CESTAT, while holding the issue in favour of the assessee and against the revenue, also observed that the show cause notice was bad for invocation of the extended period of limitation. 6. Section 11A of the Central Excise Act relates to recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded. Under sub-section (4) thereof, where any duty of excise has not been levied or paid or has been short-levied or shortpaid or erroneously refunded b....

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....hese particulars to the department on the ground that, since the exemption notification was inapplicable on the date of receipt of the goods by the assessee, they were entitled to claim the benefit of Cenvat credit. 9. The bonafide belief of the assessee, that they were not liable to pay duty, would not, by itself and without anything more, amount to fraud or collusion or wilful mis-statement or suppression of facts or contravention of the provisions of the Act or the Rules with intention to evade payment of duty. The extended period of limitation would apply only to cases where the adjudicating authority has put the assessee on notice of its falling within any one of the clauses (a) to (e) of Section 11A(4). In the present case that was....