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2014 (6) TMI 303 - AT - Central ExciseWaiver of pre-deposit of duty - availment of cenvat credit on inputs without receiving the input materials or processed materials from the job workers - equal amount of penalty under Section 11AC - Held that:- that none of the job workers were found to have been engaged by the applicant. The applicant did not dispute this allegation of the Department. The number of workers were only five, is also not in dispute. The inspection carried out by the Chartered engineer was in the presence of the Director, Shri Ashok Kumar Kar. Is also not in dispute. During investigation, the Director admitted that he would not issue any challan for sending goods to job workers and the goods after finishing were directly sent to customer’s premises from the job worker as is clear from the reply to question Nos. 17 to 20 respectively. The inspection of Chartered Engineer shows that the machines/machineries are old and rusted, there was very low consumption of electricity, workers as low as five in number and the diesel engine was not operating condition. Admittedly, the Director of the Company was present during inspection. Thus, prima-facie, it is revealed that the applicant indulged in irregular availment of cenvat credit on inputs without receiving the input materials or processed materials in their factory for manufa cture of finished goods and passed the same purported credit to various consignees in the guise of duty paid on their finished final products, when the goods were neither manufactured in their factory nor manufactured through job workers. The applicant did not follow the procedure prescribed under Notification 214/86– CE dated 25.3.1986. In these circumstance's , the applicant is not able to make out a prima– facie case for total waiver of pre–deposit. - stay granted partly.
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