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2016 (8) TMI 787 - AT - Central ExciseCenvat credit - received only invoices without the receipt of inputs in question - clearance of defective CTD bars and rods by showing them as scrap which amounted to almost 80% of the production - Held that:- there is nothing on record to show that the goods were not actually received by the present appellant, which stands duly reflected by them in their RG-23 Part A register and stand utilized by them in the manufacture of their final product. Further, as seen from the impugned order of the Commissioner (Appeals), he has observed that there is circumstantial evidence available on record to indicate that the defective rounds produced by the manufacturer were not scrap. Such circumstantial evidence referred to by the Commissioner (Appeals) is the fact that the original manufacturing unit has shown more clearance of defective rounds than the prime quality rounds. There is otherwise no evidence to show that such excess cleared defective rounds were received by the present appellant. They may have received defective goods/ scrap, which was admittedly defective and was capable of melting in the furnace. In the absence of any evidence to the contrary, it is found that the denial of Cenvat Credit on the basis of investigations conducted at the third party end cannot be adopted as the sole basis for denial of credit. - Decided in favour of appellant
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