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2022 (6) TMI 912 - Central Excise
Head Note / Extract:
CENVAT Credit - availment of credit fraudulently without receipt of inputs - whether appellant M/s. Santram Metals & Alloys Pvt. Ltd. are eligible to Cenvat credit on the basis of documents which are claimed to have been received along with inputs invoices issued by the units located at Jammu? - HELD THAT:- The officers visited the appellant’s factory on the basis of information that the appellant availed the Cenvat credit on invoices, without actual receipt of the goods. However revenue did not find any shortage/excess of inputs or finished goods in factory of Appellant. Officers also seized records/ documents related to the receipt of the goods and availment of cenvat credit. The Revenue could not bring any evidence from the Appellant’s factory by which it can be shown that the goods covered under the invoices were not received by them. In the entire investigation the evidences which were relied upon are related to transporters/ RTO check post. On the basis of such third party evidences revenue alleged that goods were not received by the appellant in their factory. Contrary to these evidences the fact that the appellant have recorded the receipt of the goods in their cenvat account, the purchase of the goods under the invoices in question were booked in books of account and raw material receipt account, the said purchased goods also shown for use in manufacturing of dutiable finished goods. Merely on the basis of the transporter records and RTO check-post reports, it cannot be concluded that the inputs were not received by the appellant. In the absence of any evidence to the contrary, we find that the denial of Cenvat credit on the basis of the investigations conducted at the third party end cannot be adopted as the sole basis for denial of credit. The allegation of the Revenue that the appellant have not received the inputs made against the appellant are not sustainable and thus, the impugned orders are liable to be set aside - Appeal allowed - decided in favor of appellant.