Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 944 - AT - Central ExciseCENVAT Credit - substitution of re-rollable scrap with kabari scrap - procurement of higher valued scrap, diverting the same in open marker without issuance of any Central Excise invoice and substituting the same with the kabari scrap for maintaining the inventory of stocks of raw material - scope of SCN - Held that:- The facts of the case are contrary to the allegation made in the show cause notice as it is alleged in the show cause notice that the appellant/assessee has substituted the re-rollable scrap with kabari scrap which means the re-rollable scrap was reached to the factory of the appellant and thereafter, the same was substituted with kabari scrap to maintain their statutory records - The two allegations of the Revenue itself are contrary to each other which shows that proper investigation was not conducted to establish the fact whether the re-rollable scrap was not reached in the factory or the same has substituted by the appellant with kabari scrap. Benefit of doubt goes in favour of the appellant/assessee - cenvat credit cannot be denied on the basis of assumption and presumption and without any specific allegation. Moreover, no investigation has been conducted to establish the fact that the appellant/assessee has received kabari scrap in their factory instead of re-rollable scrap. As the investigation is deficient, in that circumstances, we hold that the appellant/assessee has taken cenvat credit correctly. Denial of credit not justified - imposition of penalty also not justified - appeal allowed - decided in favor of appellant.
|