2022 (6) TMI 1212

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....ailable in the Balance Sheet of the respondent during the relevant period and that there was much confusion during the relevant period as to whether credit could be availed in respect of trading activities and the issue was in litigation leading to perversity? 2. Whether, the CESTAT is right in dropping the demand for extended period by ignoring the factual findings arrived at in Order-In-Original by the Commissioner thereby leading to perversity in the impugned Final Order? 3. Whether, mere availability of details of trading in Balance Sheet is sufficient to drop the demand for extended period on the ground that there was no suppression? 4. Whether, the CESTAT is right in attributing the prior knowledge of trading activity of the re....

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....t credit and recovered from it under Rule 14 of the Cenvat Credit Rules, 2004 read with Proviso to Section 73 of the Finance Act, 1994 and proviso to Section 11A of the Central Excise Act, 1944. A reply was filed by the respondent leading to Order in Original dated 30.04.2011 by the Chief Commissioner of Customs holding that the Cenvat credit was inadmissible for trading activities and it was disallowed. Further direction was issued for appropriation of the said sum in the Cenvat account on 31.08.2010 and it was paid under protest. 4. On appeal, the Customs, Excise & Service Tax Appellate Tribunal ('CESTAT' for short) held that there was no suppression of facts on the part of the assessee with an intent to evade payment of tax and it confi....

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....11 vide notification No.3/2011-CE(NT) issued by Government of India. He submitted that Division Bench of Madras High Court in an identical situation in the case of Asstt. Commr. of GST & C. EX., Chennai vs Shriram Value Services Pvt. Ltd. (2019 (368) E.L.T. 928 (Mad.) has held that when an assessee has acted in good faith, invoking extended period of limitation is not tenable. 8. We have carefully considered the rival contentions and perused the records. 9. Undisputed facts of the case are, as recorded in paragraph 6 of the show cause notice, it was issued based on the balance sheet for the year ending 2008. Thus, the contentions of the Revenue that respondents trading activity was not known to the department and that it was learnt based ....