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2018 (1) TMI 716 - AT - Central ExciseCENVAT credit of CVD paid on imported scrap - Revenue held a view that the appellants should have reversed the credit availed on imported scrap, which were cleared as such, during the year 2011-12 - Held that: - There is no verification or evidence to the effect as to how the appellant could have manufactured the Aluminium ingots other than by the accounted raw materials in their books. It is also not clear as to how a 7% waste generation is found to be not acceptable by the Original Authority. The Original Authority even questioned the fact that the appellant used all the three sources of Aluminium scrap. In case of such apprehension, it is for the Revenue to verify the facts and to establish that the imported scrap were in fact diverted. The Revenue has not even verified the type of furnace used by the appellant. It would appear that the whole burden of establishing non-clearance of imported Aluminium scrap ‘as such’ was put on the appellant - such proposition is against the basic principle of law. Demand on the basis of the entry of burning loss - Held that: - the Revenue did not adduce any evidence for manufacture on that date, which was cleared unaccounted clandestinely. No duty demand can be confirmed by inference. The present case is only based on the inferences and un-substantiated allegation and as such, the impugned order cannot be sustained - appeal allowed.
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