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2019 (5) TMI 213 - AT - Central ExciseCENVAT credit - duty paying documents - credit availed based on invoices raised and issued by second stage dealers - it appeared that appellant had received only non-duty paid M.S. Scrap without any valid cenvat documents for the same from the Central Excise registered dealers and fraudulently taken ineligible Cenvat credit - HELD THAT:- The entire allegations are supported only by the statement of Shri G.Baskaran, Proprietor of Amman Steels. The examination of Shri G. Baskaran was requested for by the appellants vide their letter dt. 05.01.2011. However, from the facts on record (para16) of the OIO dt. 30.03.2011, it emerges that Shri Baskaran vide a letter dt. 16.03.2011 conveyed his disinclination to appear for a cross examination on the grounds that they had already filed their reply to the SCN and that they were also a co-noticee in the SCN. The reply alluded to by Shri Baskaran is the letter dt.16.08.2010, reference to which is found in para-13 of the OIO. In the said reply, the allegations made in the SCN have been denied and it has been contended that the depositions made were not corroborated with any tangible or material evidence; that they received payments from the appellant for the supplies and it could not be alleged that they had issued only their invoices. Even the slender thread of “supporting evidence” namely the statement of Shri G. Baskaran, Proprietor of Amman Steels, also stands neutralized. This being so, any allegation based on that sole statement will surely lose their bite. When the investigations have found discrepancies in only 10% of the invoices examined for a disputed period of 17 months between June 2005 and November 2006, that too on the basis of a sole statement which also has been subsequently denied by the person concerned, and in the absence of any samples of inputs drawn for corroboration, the allegation that appellants had received only locally procured scrap instead of CR, HR, CR sheets etc. in the input invoice, will not have any legs to stand upon. The allegations made out against the appellants have not been convincingly proved - appeal allowed - decided in favor of appellant.
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