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2019 (3) TMI 853 - AT - Central ExciseCENVAT Credit - whether main appellant herein has correctly availed CENVAT credit or otherwise and whether the allegations of the Revenue that main appellant has availed CENVAT credit without receipt of the material is correct or otherwise? - Held that:- There is no allegation as well as any evidence to indicate that the goods have been diverted by the appellant to another party or collection of any amount as payable towards such diversion. Nor there is any allegation in the show-cause notice as to there being buyers of diverted imported goods. It is to be noted that though the factory premises of the main appellant was visited by the officers, no physical verification of the finished goods/in process material or raw material was undertaken, which could have been a pointer if there is any discrepancy in stock, though it may not lead to inference that appellant did not receive the goods in the factory or has cleared their own manufactured goods under the guise of job work The statement received from the Commercial Tax Department as to number of vehicles entering into A.P. needs to be taken with pinch of salt and it cannot be held to be a conclusive evidence of non-transportation of goods. Revenue authorities have also not brought any evidence to show that the vehicles mentioned in the LRs are not vehicles for transportation of goods and are that the said vehicles were during the period of time deployed somewhere else. In view of this, the impugned order recording that appellant is ineligible to avail CENVAT credit of ₹ 39,69,377/- is unsustainable. Revenue has not proved beyond doubt their case of non-transportation of materials from these three parties to main appellant for doing job work on the goods. The only argument adopted by the learned A.R., is that these three persons have discharged the duty liability on being pointed out to them that they have availed CENVAT credit without receipt of the inputs. It is stated that these three parties have in order to end litigation and also the amounts involved were very miniscule settled the matter by paying the disputed amount. Accordingly, the demands confirmed against the main appellant on this ground also are unsustainable. Appeal allowed - decided in favor of appellant.
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