Case Law Details
Jai Balaji Industries Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
The CESTAT, Kolkata in M/s Jai Balaji Industries Limited v. Commissioner of Central Excise [Excise Appeal no. 9 of 2011 dated June 26, 2013] had set aside the order demanding excise duty and held that the buyer who has paid a valuable consideration could not be proceeded upon by taking the aid of a larger period of limitation as per Section 11A(1) of the Central Excise Act, 1944 unless it is proved that the buyer was also involved in fraud.
Facts
M/s Jai Balaji Industries Limited (“the Appellant”) purchased plant and machinery (“the Impugned Machinery”) from M/s Saha Industries (“the supplier”) which was duly registered with the Central Excise department on which the Appellant claimed CENVAT credit on the basis of the duty paid invoices.
An investigation dated January 30, 2008 (“the Investigation”) was carried out in the premises of the supplier in which the department concluded that the supplier did not have the proper infrastructure to manufacture the Impugned Machinery and the report of a chartered engineer in August 2008 was also obtained.
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