H P M Chemicals Fertilizers Ltd Vs Commissioner of Central Excise and Service Tax (CESTAT Chandigarh)
CESTAT Chandigarh allowed the appeal filed by HPM Chemicals & Fertilizers Ltd. against the Order-in-Appeal dated 16.03.2021, which had upheld the Order-in-Original dated 28.03.2018 confirming a demand relating to CENVAT credit availed during 01.08.2012 to 19.01.2014.
The appellants manufactured insecticides, herbicides and fungicides and availed the benefit of Notification No. 56/2002, as amended by Notification No. 01/2010 dated 06.02.2010. They procured inputs from several manufacturers on payment of Central Excise duty and availed CENVAT credit on the basis of invoices. Revenue sought recovery of the credit on the ground that the inputs were supplied by manufacturers availing Notification No. 01/2010, which, during the relevant period, was not covered by the exclusions under Rule 12 of the Central Excise Rules, 2002. A Show Cause Notice dated 01.09.2017 was issued invoking the extended period.
Before the Tribunal, the appellants submitted that the proceedings were barred by limitation. They stated that they had been filing refund claims from time to time along with relevant documents, including invoices, before the jurisdictional authorities. They contended that there was no suppression, fraud, collusion or other conduct warranting invocation of the extended period. They also submitted that the invoices did not indicate that the eight input suppliers were availing Notification No. 01/2010.
