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2006 (7) TMI 483 - AT - Central ExciseDemand duty - disallowance of Modvat credit - inputs under the invoices - setting aside of the penalties imposed u/s 11AC - HELD THAT:- I find from the records that the lower authorities have confirmed the demand of the duty, based on the fact that the one of the truck, which purportedly transported the inputs, was registered for agriculture work. In the absence of any such findings, it is leads to an inference that the other three trucks did carry inputs to the appellant’s factory. Further, I find that the appellant has adduced enough evidence in form of weighbridge slips, Consignment notes of the transporters etc. The revenue has not placed any evidence contrary, in the form of statement of the transporters or weighbridge owner to refute the appellant’s claim. This in itself would indicate that the inputs were in fact transported to the appellant. The overwhelming evidences brought on record by the appellant are to suggest that the inputs were received in the factory of the appellant. Hence on merits the appellant’s appeal succeeds and demand of duty is unsustainable. The revenue is not disputing the fact that the appellant had filed the RT 12 returns with the authorities, if that be so, then the lower authorities should have before assessing the returns made enquiries as to the consumption of the inputs and manufacturing of the finished products. The authorities having failed to do so and detect the non-receipt of the inputs on such examination, cannot now turn around and say there were suppression, mis-statement and fraud. Hence on the limitation also the appellants have demonstrated that the demand is not sustainable. As the demand is not sustainable on merits and as well as on limitation the impugned order is set aside and appeal of the appellant is allowed while the appeal filed by the revenue is dismissed. Ordered accordingly.
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