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2013 (1) TMI 75 - AT - Central ExciseWrong credit taken based on fake units - manufacturers of Yarn non-existent - provisional invoice - manufacturing premises declared by assessee was not in existence as stated in Panchnama dated 20.7.2005 - Held that:- Both sides could not confirm that there was a statutory requirement during the relevant time for merchant manufacturer to compulsorily declare supporting manufacturer or manufacturing premises. If there was no such requirement, just because respondent declared a premises, it cannot bind for all times to come. If the assessee had chosen to send the Yarn to some other manufacturer and got the grey fabrics manufactured, this should have been examined by the adjudicating authority and considered. Further, the claim of the assessee that cenvat credit was taken on Yarn and not on grey fabrics and therefore, credit taken could not have been denied without showing that manufacturers of Yarn were non-existent is also valid. The assessee had filed stock declaration on 01.4.2003 which was actually that of Polyester Yarn and this also shows that the claim of the respondent that credit was availed on Yarn and not on fabrics, seems to be correct - both the lower authorities have not considered the issue in proper perspective, thus the matter is remanded back to the original adjudicating authority for reconsideration - in favour of assessee for statistical purposes.
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