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2017 (11) TMI 473 - AT - Central ExciseCENVAT credit - pig iron - pig iron appeared to have been not received and used for the intended purposes of manufacture of final product - case of Revenue is that it is not technically feasible for the appellant to use such quantities of duty paid pig iron in the manufacture of cast iron ingot moulds during the impugned period - Held that: - there is no study conducted by NIT. It is only an opinion given based on the query raised by the Commissioner in his letter dated 9.7.2009 without referring to the name of the appellant. We are not able to appreciate how a specific study conducted by the very same expert by physical observation of three days of operation in the appellant’s unit can be brushed aside by preferring a general opinion given based on a query by the Department. In our considered opinion, we find that the Original Authority has not given due regard to the expert’s study report of the very same authority conducted in the premises of the appellant. The reasons for the same has also not been recorded. Regarding the other evidences with reference to manufacturing process in M/s. Bhawani Moulders Pvt Ltd. and usage of the appellants own lorry for movement of the pig iron, we note that the defence of the appellant with supporting documents have not been duly analyzed for a proper finding by the Original Authority. Denial of credit amount of more than ₹ 5 crore, on the principal raw material procured and used by the appellant, cannot be made based on the opinion and inferences - Original Authority shall decide the case afresh after providing adequate opportunity to the appellant to submit their defence along with all the supporting evidence - appeal allowed by way of remand.
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