The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) quashed time barred Show Cause Notice ( SCN ) and observed that substantive benefit cannot be denied on procedural grounds.
The Appellant,M/s. S.L. Polypack Private Limited, in the appeal assailing the order of the Commissioner of CGST and Central Excise (Appeals). The facts of the case in brief are that the Appellant is a manufacturer of Plastic Cups and Plastic Plates falling under Tariff Item No.39231090 of the Central Excise Tariff Act, 1985.
During the period 2007-08 and 2008-09, the Appellant had received some inputs viz. Plastic Granules under the cover of input invoices issued by M/s. L.G. Polymers India Ltd. The Appellant received the goods in their factory and utilized the same in the manufacture of their finished products and finished goods were cleared on payment of appropriate duty. The Appellant had taken credit of duty paid on the said inputs.
The allegation is that invoices does not mention credit registration number of the consignee, registration number of the carrier vehicle and delivery of the goods was made at a place other than the factory
It is the case of the Revenue that credit was taken on the basis of ineligible documents which resulted in contravention of Rule 9 of the CENVAT Credit Rules, 2004. In their reply to the Show Cause Notice the Appellant submitted that the defects pointed out are technical or procedural lapses, but there is no dispute in respect of other things like duty paying character of the goods, receipt of the goods and utilization of the same in the manufacture of the finished products.
The Counsel for the appellant submitted that the appellant had given registration number, which was allotted to them prior to the allotment of PAN based registration number. Non-mentioning of the vehicle number is a minor procedural lapse which cannot be a ground for denying credit.
The Tribunal of PK Choudhary, Judicial Member observed that “The substantive benefit cannot be denied on procedural grounds and accordingly the impugned orders cannot be sustained.”
Quashing the SCN, the Tribunal observed that the Show Cause Notice was issued on the basis of audit of records maintained by the Appellant and therefore extended period cannot be invoked by alleging suppression since they are also submitting/filing the statutory returns on a regular basis.
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