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2019 (5) TMI 1431 - CESTAT CHANDIGARHCENVAT credit - benefit under N/N. 56/2002-CE dated 14.11.2002 availed - it was alleged that J&K based units are not purchasing raw material, so there is no question of manufacture of finished goods by J&K based units, the goods manufactured were sold to UP based manufacturers who in turn partially exported their finished goods and partially sold in domestic market - demand confirmed on the grounds that the farmers are non existence ensuring non supply of raw material by commission agents to J&K based units and absence of evidence of manufacture by the Jammu based manufacturer. HELD THAT:- The investigation was not conducted at the end of the Jammu based manufacturer and whole case has been based on the investigation conducted at Commissioner Central Excise, Merrut-II. Without investigation, it cannot be held that the Jammu based manufacturer were not manufacturer during the impugned period. Moreover, the entries of vehicles at the toll barriers also certified that the movements of raw material and finished goods. Further during the period of investigation itself, the Jammu based manufacturer were allowed continue their activity by procuring inputs from UP based supplier and selling goods manufacturing to their buyer/appellant. During the course of investigation, itself shows that the allegation is only on the basis of the assumption and presumption, therefore, it cannot be held that the appellants were not manufactured the goods during the impugned period. The Jammu based manufacturer were manufacturer during the impugned period and paid the duty on the goods manufactured by them. Consequently, the cenvat credit can’t be denied to the recipient of goods M/s Fine Organics - the allegations against the appellants are based on assumption & presumption which is not sustainable - penalty also not imposable. Appeal allowed - decided in favor of appellant.
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