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2023 (12) TMI 603 - CESTAT CHANDIGARHCENVATCredit - rolled products/ rounds and HR coil/ sheets - denial on the ground that they are not inputs but were final products in themselves - procuring only Cenvatable invoices from their suppliers, like M/s Kailash Steel and Alloys without commensurate movement of goods - penalties - HELD THAT:- The learned Commissioner failed to appreciate that HR Coils can be used as inputs in the manufacture of ingots/ billets in an induction furnace. The Revenue’s allegation that the appellant did not have equipment to cut the coils and manufactured “formers” for captive consumption is not based on any evidence like Panchnama. The appellant’s claim that they have borrowed the equipment from other manufacturers cannot be ignored. Obtaining only the invoices from his suppliers, without receiving the material - HELD THAT:- Revenue has not undertaken any investigation into the aspect of actual transportation and the receipt of the material; no statement of transporter/ driver was recorded; no enquiries with the banks was made to ascertain whether the transactions were genuine and are not just temporary adjustments with flow back of money. Under such circumstances, the Department has not made out any case against the appellants. Mere allegation without any evidence to substantiate cannot hold. Penalties - HELD THAT:- The appellants are eligible for the disputed CENVAT credit. When the credit is held to be admissible, penalties impose on both the appellants do not survive. Appeal allowed.
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