TaxTMI 
TaxTMI 
2026 (9) TMI 824
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....ce with provisions of the Credit Rules. The Appellant, during the relevant period, has opted for reversal of proportionate CENVAT credit in terms of Rule 6(3A) of the Credit Rules and has accordingly filed intimations with the Department. For computing the reversal of CENVAT credit, the Appellant took into consideration only amount of Common CENVAT credit instead of amount of Total CENVAT credit. Further, the Appellant was also engaged in the trading activity which was treated as exempted service. The total CENVAT credit included the amount of CENVAT credit in respect of inputs/input services, which were exclusively used in providing taxable output service/ supply of dutiable goods, and such amount CENVAT Credit was not included into the amount of Common CENVAT Credit. The Appellant considered that common CENVAT credit, which pertained to inputs and input services which were commonly used in providing taxable as well as exempted services/goods, for computing the proportionate amount of reversal of credit. 4. The reversal of the amount of CENVAT Credit under Rule 6(3) was regularly disclosed in the ST-3 Returns. At various times, audits and enquiries were made by the different de....
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....C% 46,39,641 7 Amount Due on proportionate basis taking into account Total CENVAT Credit G= D x C% 4,23,56,043 8 Differential amount to be paid H= G - F 3,77,16,402 For year 2015-16 Sr. No. Description Amt. in Rs. 1 Total services turnover A 2,28,36,45,446 2 Exempted services turnover including trading B 1,17,75,82,398 3 Percentage of exempted services C= D x 100/A 51.57 4 Total CENVAT Credit taken D 14,88,96,306 5 Total common CENVAT credit taken E 88,91,098 6 Amount already paid on proportionate basis taking into account only common CENVAT Credit F= E x C% 45,85,141 7 Amount Due on proportionate basis taking into account total CENVAT Credit G= D x C% 7,67,79,714 8 Differential amount to be paid H= G - F 7,21,94,573 Summary Sr. No. Description Amt. Rs. 1 Differential amount to be paid for 2014-15 3,77,16,402 2 Differential amount to be paid for 2015-16 7,21,94,573 3 Total amount to be paid 10,99,10,976 9. Further, the demand has been confirmed ....
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....h deliberate intent, does not automatically constitute a wilful misstatement. "Suppression of facts" the most frequently litigated ground, implies a deliberate failure to disclose full and correct information with the specific intent to evade payment of duty; crucially, mere omission, negligence, or inadvertence, without this underlying intent, does not constitute suppression. Lastly, "contravention with intent to evade duty" is a broader category encompassing any violation of the Act or Rules, but it is the accompanying intent to evade duty that is paramount for the extended period to apply. 15. We further find that it was held that mens rea is central to all grounds for invoking the extended period; a consistent judicial and strict stance has been taken in interpretation of the mens rea to prevent the authorities from invoking extended period as a default for any non-declaration. It has been consistently held that to establish 'mens rea' the assessee must have actively concealed, misrepresented, or taken affirmative steps to hide facts, rather than just failing to declare something they might have genuinely overlooked or misunderstood. Hon'ble Supreme Court has repeatedly held....
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....escapes assessment, the responsibility for it rests on the officer. c) Although the Central Excise Officer is empowered to scrutinize all the Returns call for records and if necessary, make the best judgment assessment, if as per the instructions of CBIC, the officer does not conduct a detailed scrutiny of same Returns and as a result is unable to discover any short payment of tax within the period of limitation, neither the assessee nor the officer is responsible for such loss of revenue. Such a loss of Revenue is the risk taken by the Board as a matter of policy. d) Extended period of limitation cannot be invoked unless there is evidence of fraud or collusion or willful misstatement or suppression of facts or violation of the provisions of Act or Rules with an intent. e) Intentional and wilful suppression of facts cannot be presumed because (a) the Appellant was operating under self-assessment or (b) because the Appellant did not agree with the audit and claimed that CENVAT credit was admissible; or (c) because the Appellant did not seek any clarification from the Revenue; or (d) because the officer did not conduct a detailed scrutiny of the Returns and....