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2015 (5) TMI 1069 - AT - Central ExciseRecovery of irregularly availed cenvat credit - partnership firm engaged in the manufacture of Parts of Motors & Generators, parts of Railway Locomotives and Threaded Articles of Iron & Steel - raw materials MS Plates, HR Plates, Sheets, Angles, Channels, Rounds, Square, Bar, Steel Wire and Welding Electrodes, Bearing and Paints etc - cenvat credit of ₹ 17,49,974/- availed fraudulently on the basis of documents without receipt of 716.1225 MT of MS Steel/Sheets - Held that: - the lower Authorities have held the case in favor of the Respondent by holding that there was no error involved in availing credit. The quantity of the goods in terms of weight cannot be compared with the number of the parts/ equipments sold, as complete details of purchase made have not been provided to the department. The allegation of non-receipt of raw material and availment of cenvat credit on proper documents are not sustainable because from clearance of so much value of finished goods, used quantity of raw material, the value addition must be more than 300% of raw material cost, which is not acceptable for considering the nature of goods handled by the Respondent. The purchase transactions were made only through cheque i.e. bank transactions - the allegation of non-receipt of the input goods not sustainable. The balance amount after utilization of CENVAT credit has been paid by the Respondent from their PLA account, which shows that there is no fraudulent availment of Cenvat Credit. Denial of CENVAT credit and recovery of amount not justified - appeal rejected - decided against Revenue.
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