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2013 (9) TMI 90 - AT - Central ExciseCENVAT Credit - Revenue was of the view that in some cases supplying just invoices without any goods to some of its customers to enable them to take fraudulent Cenvat credit - Held that:- The case was made out based on inadequate investigation and unacceptable principle followed during adjudication - The only matter that could have survived was the transportation of 6 consignments weighing more than 500Kgs in each case, and one such case being that of a consignment weighing 705 Kgs transported by an auto-rickshaw. During the adjudication proceedings the Appellants requested for opportunity to cross-examine - Such opportunity was denied to them - the main ground on which the adjudication order and first appellate orders were contested was denial of natural justice by denying cross-examination of persons whose statements were relied upon - during investigation stage the Appellants were not confronted with the evidences appearing against them - A statement was recorded without showing any evidence against them - During the statement the authorized signatory had confirmed that all the goods were received in the factory and payments to the suppliers were made by cheques. The reason for not allowing the cross-examination was not acceptable at all - An argument that at the time of recording the statement he was trustworthy but he cannot be trusted during cross-examination was inherently contradictory - Shalimar Rubber Industries and Ors v. CCE, Cochin [2002 (11) TMI 91 - SUPREME COURT OF INDIA ] denying cross-examination would strike at the root of the evidence given by the concerned persons - More than nine years have passed by - The investigation itself was half-hearted with reluctance to examine the detailed data and reluctance to confront the accused with the data to get their explanation –Decided in favour of Assesses.
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