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2015 (1) TMI 217 - CESTAT NEW DELHIDenial of CENVAT Credit - Credit of duty availed on the basis of endorsed duty paying gate passes - Held that:- officers, who visited the appellant s factory on 13.12.1994, did not find any incriminating documents from the premises. The allegations made by the Revenue that these trading firms were being governed by the appellant and they were having the overall control over them, do not emanate any evidence on record. On the contrary, Shri MK Jain, General Manager(Finance) of the applicant company in both his statements recorded on 04.03.1996 and 20.07.1996 have categorically stated that they were receiving the raw-materials from the traders in question, who were major suppliers of the raw-materials. The adjudicating authority has chosen to ignore the said statement of Shri MK Jain. No enquiries stand made from Shri Sundrawat and Shri Duggar, whose names were taken by Shri Anil Khandelwal as the persons who were taking the bills arranged by him and were making the cheques and with whom cheque books of various parties remained. No blank cheque books were recovered from the appellant s factory during the course of search. No enquiries were conducted from the concerned bank so as to corroborate the statements of the said traders. There is not sufficient evidence to arrive at a finding that the appellant had availed CENVAT credit on the basis of bogus gate passes without bringing raw-materials into their factory, we also note that the Revenue has not shown any other alternate source of procurement of raw-materials. Admittedly, the appellant had manufactured their final product, which has been cleared on payment of duty. In the absence of any raw-material, it is not only difficult but virtually impossible and impractical for the appellant to manufacture their final product. There is neither any allegation much less any evidence on record to show that the appellant had procured the raw-materials from other alternate source. - The adjudicating authority has also referred to the fact that some of the vehicles were found to be non-transport vehicles. He has given a list of vehicle numbers in his impugned order. However, we have been shown that all the 23 vehicle numbers found in the said list were never mentioned in the gate passes under the cover of which duty paid material was received by the appellant. It remains undisclosed as to from where the adjudicating authority has picked up the said 23 vehicle numbers. Further, no investigation stands made from the actual manufacturers, who have supplied the goods to the traders, who in turn had endorsed the gate passes. If according to the Revenue, the traders have only endorsed the gate passes, there is no evidence on record as to where the goods actually received by them under the cover of gate passes issued by the manufacturers have vanished. - impugned order is not sustainable - Decided in favour of assesse.
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