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2009 (6) TMI 519 - AT - Central ExciseCenvat Credit- Commissioner (Appeals) found that the respondents had raised two Central Excise invoices covering clearances of bright bars involving duty of Rs.58,465/- to M/s. Lakshmi Machine Works but failed to debit the Cenvat account by the duty amount owing to clerical error. Commissioner by the impugned order vacated demand of duty of Rs. 58,465/- found due on clearance of finished goods by the respondent without payment of duty, demand of MODVAT credit of Rs. 5,83,507/- under rule 57I(ii) and penalty. Thus the appeal filed by revenue. Held that-challenge of revenue for the amount of Rs. 58,465 is without merit. Further held that- However, in this exercise the assessee was handicapped for the reason that the documents evidencing movement of materials to adjacent unit for conversion to bright bars had not been furnished to them by the Revenue before the allegations were decided. The assessee was not furnished with these material documents; they were also denied cross-examination of mahazar witnesses. I find that the adjudication also involved failure to comply with the principles of natural justice by the authority who confirmed demands against the respondents and imposed a penalty on them. Thus, there is no reason to interfere with the impugned order vacating the demands and penalty made on sound grounds. The appeal filed by the Revenue is dismissed as devoid of merit.
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