Case Law Details
Emami Paper Mills Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)
CESTAT held that mere statement in the Order-In-Original dated 08.06.2016 that the appellant had suppressed material facts from the Department and that the purported contravention had been detected only during audit was insufficient justification for invoking the extended period of limitation.
the evidences on record do not show that the appellant had acted otherwise than in a bona fide manner. It is not disputed that the details regarding availment and utilization of the disputed credit had been disclosed in the appellant’s Central Excise returns filed with the Department. The issue of purported illegal utilization of credit had come to the Department’s knowledge as far back as in the year 2013 while conducting audit. Yet, the show cause notice had been issued belatedly and only in the month of February, 2015. The defence of limitation had been specifically canvassed by the appellant in its appeal petition before the Commissioner (Appeals), who failed to apply his mind independently to the facts of the case and examine the said issue properly. As such, CESTAT do not see any reason to sustain the invocation of extended period of limitation against the appellant.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The instant appeal has been preferred by the appellant-assessee against an Order-In-Appeal dated 28.12.2017 passed by the Commissioner (Appeals), CGST, CX and Customs, Bhubaneswar. Vide the said impugned order, the Commissioner (Appeals) upheld the Order-In-Original dated 08.06.2016 passed by the Additional Commissioner, Central Excise, Customs and Service Tax, Bhubaneswar-II and confirmed the disallowance of Cenvat Credit of Rs. 9,08,676/- for the period 2011-12 and 2012-13 against the appellant-assessee with interest and equivalent penalty under various provisions of the Central Excise Act, 1944 (hereinafter referred to as “Act”) read with the Cenvat Credit Rules, 2004 (hereinafter referred to as “Rules”).
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