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2015 (5) TMI 135 - AT - Central ExciseDenial of MODVAT Credit - Bogus invoices - MODVAT Credit was denied on the basis of evidence to the extent of the report of RTO that the vehicle numbers mentioned in the invoices are incapable to carry of such huge quantities of the material - Held that:- There is no dispute in the Central Excise invoices are genuine and the goods were cleared from the supplier of inputs accompanied with Central Excise invoices. It is evident from the statements of the supplier of inputs that the goods were transported through the broker/transporter. The statements of the transporters were heavily relied upon, but they did not turn up for cross-examination and therefore, such evidence cannot be relied upon. The applicability of RTO report in respect of all the consignments is doubtful. It is not clear from the RTO report that it would be applicable in respect of 66 consignments. There is no evidence that the goods were diverted by the Appellant. It is important to note that the supplier of input categorically stated that the goods were transported through the agents/broker of the transporter and the vehicle numbers were mentioned in the invoices at their instance. In such situation, MODVAT Credit cannot be denied merely on the basis of report of RTO. - denial of MODVAT Credit alongwith interest and imposition of penalties cannot be sustained on merit, without going into the submission on limitation of the Appellants. Accordingly, the impugned order is set aside - Decided in favour of assessee.
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