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2020 (3) TMI 16 - AT - Central ExciseCENVAT credit - duty paying invoices - Credit in respect of input on 10 Bill of Entries which were disputed by the Audit party - proper verification not carried out - principles of natural justice - Penalty imposed on Shri Hari Nair - HELD THAT:- The appellant for each and every objections whereby the Cenvat Credit was disallowed, given detailed explanation in a chart along with relevant documents submitted - the appellant have given proper justification for the discrepancies alleged by the revenue. They have also co-related the Bill of Entry with other documents. With this co-relation it has been established that against the Bill of Entry the appellant have received the input in their factory and the same have been used. Therefore, the Cenvat Credit should not have been disallowed only for the procedural/clerical lapse. It is the submission of the appellant that the co-relation and the supporting documents submitted by the appellant have not been verified by the adjudicating authority - it is found that even though some procedural lapse has occurred but since the receipt of inputs under the cover of Bill of Entry and use of input in the manufacture of final product was neither alleged nor established by the revenue, the Cenvat credit cannot be denied. Penalty imposed on Shri Hari Nair - HELD THAT:- It is evident from the record that the act of alleged wrong availment of credit has happened in the year 2008-09 whereas Shri Hari Nair has joined the appellant company only in 2011. Therefore, it cannot be said that he has abated in the act of alleged wrong availment of credit by the company. Moreover, the credit was disallowed only for some discrepancy in the documents which cannot be attributed to serious offence of evasion of duty with mala fide intention, therefore, in the facts and circumstances of the case Shri Hari Nair was wrongly imposed with penalty under Rule 26(2) of the Central Excise Rules, 2002. The adjudicating authority since not verified all the co-relation given by the appellant, the matter needs to be reconsidered by the adjudicating authority, the other issue of time bar is also kept open - Appeal allowed by way of remand.
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