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2015 (10) TMI 1691 - AT - Central ExciseDenial of CENVAT Credit - Suppression of facts - whether cenvat credit on certain inputs, sent by the appellant to the job workers under Rule 4(5) (a) of the Cenvat Credit Rules, 2004, is admissible to the appellant or not - Held that:- Processing loss of 10% is claimed by the appellant with respect to only M/s. Vinayak Chemicals when no such processing loss is taking place in the case of another job worker M/s. Atlas Pallet Industries for the same process. This aspect has been discussed by the first appellate authority in Para 29 of the Order-in-Appeal dated 15.9.2012. The appellant has not produced any Scientific Literature or certificate from a Chartered Engineer to support their claim that in the process of conversion of Caustic Potash Flakes into Potash Pallets there is a loss of 10% as claimed by the appellant. In the absence of any such documentary evidence, there is no reason to interfere with the order passed by the first appellate authority and the same is required to be upheld in so far as denial of CENVAT credit and interest is concerned. Appellant was sending the inputs through challans under Rule 4 (5)(a) of the Cenvat Credit Rules, 2004, therefore the activities undertaken by the appellant and job-workers of the appellant and the processes being carried out with yield were known to the department. - it can not be said that there was any suppression/ mis-statement on the part of the appellant with intent to evade payment of duty. Accordingly, it is held that penalty imposed upon the appellant under Rule 15 (2) of the Cenvat Credit Rules, 2004, read with Section 11AC of the Central Excise Act, 1944 is required to be set-aside. - Decided partly in favour of assessee.
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