TaxTMI 
TaxTMI 
2026 (8) TMI 643
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.... the findings of the Adjudicating Authority regarding availment of inadmissible cenvat credit of service tax paid on input services received during the period when the appellant was availing area based exemption. 2. Briefly stated, the appellant is engaged in manufacture of excisable goods, i.e., auto parts and chain components and was availing exemption from payment of Central Excise Duty under area based exemption Notification No. 50/2003-CE dated 10.06.2003 for the period upto 29.11.2016. Upon completion of the exemption period, from 30.11.2016 till June 2017, the appellant started clearing the goods for its factory on payment of applicable duty. 3. On the basis of the audit report, show cause notice dated 10.09.2020 was issued pro....
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....submitted that the applicant had no intention to act dishonestly and had always acted in accordance with the statutory provisions inasmuch as every relevant fact is on record and the Appellant has not engaged into any suppression, wilful misstatement, etc. with intent to evade payment of duty. All the material facts were known to the Department and were verified by them from time to time. In support of the same, it is submitted that the Appellant vide their several letters starting from 30.11.2016 [pg. 97-98 of Appeal paper book] had duly informed the Department that 30.11.2016, it would clear finished goods under payment of applicable duty after availing the facility of Cenvat Credit. Further, vide letter dated 10.12.2016 [pg. 103-105 of A....
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....ssion of facts by the party in the instant case. The party has submitted that they had duly intimated the Department vide letter dated 30.11.2016, enclosed as Annexure-4 that they would be availing cenvat credit as per the CCR and hence the Department was fully aware of the said fact: On perusal of their letter dated 30.11.2016, I find that the party has submitted two letters on 30.11.2016 vide which they given intimation of serial numbers of invoices to be used and intimation of expiry of 10 years of exemption under Notfn. No. 50/2003-CE dated 10.06.2003 and clearance of their finished goods on payment of duty after availing the facility of cenvat credit as per CCR, 2004. But it was not intimated that they would also avail cenvat credit ag....
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....uty/tax and is not applicable for the invoices received during the exemption period. No doubt that the party had declared amount of cenvat credit in their ER-1 returns but the said credit also includes the amount of credit which pertains to the invoices received by them during exemption period was not intimated by them. It came into light only during the course of audit. Therefore, I find party's contention not tenable in view of the facts that they have not intimated the department the details of input service invoices which they had received before 30.11.2016 and taken the credit in their returns. 22. I further find that Rule 9(5) of CCR provides that the manufacturer of final products or the provider of output service shall main....
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....read with Section 11AC of Central Excise Act, 1944 as they have suppressed the fact of credit on services used in expected goods, on services covered in exclusion services and without having documents (excess credit) with intent to evade central excise duty, as discussed in foregoing para(s)." 9. From the findings recorded by the Adjudicating Authority it is evident that although the appellant had intimated the Department that they would be availing the CENVAT Credit, however, it was not informed that they would also avail CENVAT Credit against input service invoices received by them during the exemption period. This amounts to suppression of facts as the appellant had concealed the fact of disentitlement to avail the CENVAT Credit. Apar....