Order date – 21 December 2022

Facts –

• The Appellant, M/s. Puducherry Co-operative Sugar Mills Limited, is a manufacturer of sugar and molasses. 
• During audit of accounts for the period from March 2016 to June 2017 wherein it was noticed that the appellant had availed ineligible credit of Excise Duty paid by the supplier
• A Show Cause Notice dated 24.12.2020 was issued inter alia alleging that the appellant had deliberately mis-declared material facts with intent to evade payment of Central Excise Duty, to recover / demand the wrongly availed.

Issue –

• Whether the appellant had availed credit of excise duty with the intention to evade payment of duty?

Order –

• The Tribunal observed from the reply submitted that the appellant had clearly mentioned that though the credit was taken by mistake belatedly, the credit was not availed by the Mill. Thus, when the credit itself was not taken / availed by the appellant, there is no scope whatsoever to allege wilful or deliberate intention to evade duty. Unfortunately, the First Appellate Authority has also ignored the plea of the appellant, by upholding the findings of the Adjudicating Authority.
• In the view of the above the Tribunal held that the demand of duty by invoking the extended period cannot sustain as the Revenue has not been able to justify the same and therefore, the demand, as confirmed in the impugned order, cannot be sustained.
• Hence the appeal is allowed.