TaxTMI 
TaxTMI 
2024 (8) TMI 1398
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.... the manufacture of the above products. At the time of audit visit, it was observed that the appellant had availed cenvat credit of Rs.12,71,720/- during the period August 2007 to March 2008. On verification, it was found that the goods claimed as inputs by the appellant were actually jumbo bags and these jumbo bags were printed with the name of the supplier and returned to them. In other words, the appellant availed cenvat credit on jumbo bags and after printing and repacking these jumbo bags cleared for export. Since the jumbo bags remained as jumbo bags and the process of printing and repacking did not amount to manufacture, the question of availing credit on the jumbo bags received by them was irregular, hence show-cause notice was issu....
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....ment is applicable to the above facts of the present case. It is also submitted that the following circulars allowed cenvat credit on the inputs that were used in the manufacture of goods exported. a. Circular No. 283/117/96-CX, dated 31. 12. 1996 b. Circular F.No. 345/2/2000-TRU, dated 29.08. 2000 2.1 The learned CA further submitted that the demand is also time barred as there is no suppression of facts. When certain information is not required to be supplied under law and the same is not reflected in their returns does not amount to suppression as held by the Hon'ble High Court of Gujarat in the case of Apex Electrical Pvt. Ltd. vs. Union of India: 1992 (61) ELT 413 (Guj.). The only allegation by the Revenue is....
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....letion of a manufactured product; (ii) which is specified in relation to any goods in the section or chapter notes of the Central Excise Tariff Act amounting to manufacture (iii) which in relation to the goods specified in the third schedule involves packing or repacking of such goods..................... 5. In the instant case, the above Clause (ii) and (iii) are ruled-out, therefore, the only question remains is whether printing of the supplier's name on the jumbo bags amounts to manufacture. The jumbo bags received by the appellant even after printing remains as jumbo bags and the same are marketable even without printing. Hence, printing cannot be incidental or ancillary to the completion of a manufactured pro....
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....and ER - 1 Returns, there was no evidence to show that the inputs and the final products were one and the same i.e., jumbo bags. Only on verification of audit during July 2009 it was noticed that they are availed credit on the final products claiming them to be the inputs also is the contention of the revenue. However, the appellant has alleged that the internal audit party visited the unit in the month of August 2008 and the department was aware of the fact that the credit was taken on jumbo bags as inputs and cleared the same after printing of the supplier's name, but show-cause notice was issued on 16.11.2009 only after the Accountant General's Office audited the records therefore, having not issued any notice after the first audit there....
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....t or suppression of fact on the part of the assessee or by reason of contravention of any of the provisions of the Act or of the Rules made thereunder with intent to evade payment of duties by such person or his agent. There is no such averment to be found in the show cause notice. There is no averment that the duty of excise had been intentionally evaded or that fraud or collusion had been practiced or that the assessee was guilty of wilful misstatement or suppression of fact. In the absence of any such averments in the show-cause notice it is difficult to understand how the Revenue could sustain the notice under the proviso to Section 11-A(1) of the Act.' It was held that the show cause notice must put the assessee to notice whic....