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2014 (3) TMI 413 - AT - Central ExciseClandestine clearance - cenvat credit - allegation of receiving unaccounted inputs and used in manufacturing and removal without payment of duty - Duty based upon the scrutiny of the records, maintained by the registered dealer - Revenue officers entertained a view that said registered dealer was issuing only invoices, without the corresponding supplies of the inputs and the payments were being received in cheque and subsequently cash was being returned to the said manufacturers. - Held That:- Entire case of M/s. Jagriti Plastics was non-maintenance of proper accounts for which they have been penalized to the extent of ₹ 25,000/-. If that be so, the allegations and findings in the present case that they have passed on inadmissible Cenvat credit to the present appellants without actually supplying the inputs cannot be upheld. While dealing with the various evidence, the adjudicating authority has observed that Shri Surinder Agarwal, Director of M/s. Jagriti Plastics had at no stage accepted that he has made payments in cash in lieu of cheque received by him. Similarly, he has scrutinized the statement of Shri Kuntal Kumar, who had written and maintained said pidilite diary and has stated that he has no knowledge about cash transactions. There is no statement accepting that the cheque were converted into cash and there was flow back of the money. Similarly, the adjudicating authority has seen the material issue note book and entries made in the private records and the statement of driver and affidavit of the drivers and has come to a conclusion that there is not a single transaction mentioned in the records of Jagriti Plastics that the goods have not traveled from the registered dealer to the manufacturing unit without proper invoices. Accordingly, he has held that department has failed to prove that the goods have not traveled along with invoices and cash has been received in lieu of cheque - Following decision of JAGRITI PLASTICS LTD. Versus UNION OF INDIA [2003 (12) TMI 82 - HIGH COURT OF GUJARAT AT AHMEDABAD] - Decided in favour of assessee.
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