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2016 (6) TMI 823 - AT - Central ExciseCenvat Credit - allegation of receipt of invoice without receipt of inputs / goods - fraudulent activity - Held that:- he case is seen to have been initiated against the appellants basing on the private records seized from the residence of Sh.Prabhakar, KMC . In these note books, certain figures/entries were mentioned against Mayur. Though in the impugned order, it is stated that the investigating officer has elaborately dealt about the link of Mayur with appellants, I do not find any such elaborate discussion or evidence. The only statement is that appellants, SLI is known in the market as “Mayur Fans” There is no evidence to link the entries resumed with the appellant. One of the grounds relied by department is that the specification of thickness of sheets shown in the invoices do not match with the specification of sheet thickness required by the appellant for manufacture of fan blades. This is answered by the appellant saying that they use sheets with thickness ranging from 0.7mm to 1.22mm. The department has not adduced any evidence to show that the fan blades manufactured by appellants cannot be manufactured using sheets of thickness as stated to have been used by appellant. The main evidence relied by department is the private note book resumed from the residence of Shri Prabhakar of KMC. In his statement dated 29-06-2005 Shri Prabhakar has deposed that the sale and purchase recorded in note book no.1 were made by him in his personal level as a side business for which no permission was obtained from anyone or kMC. - The statement of Shri. Prabhakar is not corroborated by cogent evidence to establish the allegation against appellants. The payments were made by appellant through cheque. But there are no records to establish from the accounts of appellant that there was any cash flow from appellant to KMC. On an overall appreciation of facts and evidence it is seen that whole case is based upon third party private records and statement of such third party, Shri Prabhakar. In the absence of independent evidence the charges leveled against the appellant is not sustainable - Demand set aside - Decided in favor of assessee.
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