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TMI Blog2014 (3) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... per facts on record, M/s. S B Packaging is engaged in the manufacture of POC papers bags, pouch laminated films coated / printed plastics Sheets and paper articles etc falling under Chapter 39 and 48 of the schedule to the Central Excise Tariff Act, 1985. M/s. Veer Enterprises are engaged in the manufacture of paints, thinners and acrylic polymers falling under chapter 32, 38 -39 of Central Excise Act. M/s. Vardhman Chemicals are engaged in the manufacture thinners falling under Chapter 38 of the Central Excise Act. 3. All three appellants were procuring inputs from M/s. Jagriti Plastics, who is registered dealer of various chemicals such as industrial adhesives, hardners, hermo-lastics, thermo-plastics, pyridine, PVC resins, toluene, ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same were entered by them in their RG 23A part I register. Inputs so received by them were being used in the manufacture of their final product, which was being cleared on payment of duty. 6. On the above basis, the proceedings were initiated against all the appellants by way of issuance of separate show cause notices resulting in passing of orders by the adjudicating authority confirming the demand and imposition of penalties. The said orders passed by the original adjudicating authority were upheld by Commissioner (Appeals). Hence the present appeals. 7. I have heard Shri K.K. Anand,, learned Advocate appearing for the appellant and Shri B B Sharma, learned AR appearing for the Respondent- Revenue. 8. After appreciating the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds made by the registered dealer. Even such records do not bear the name of the present appellants in any of the entries. There is nothing in said records to show that goods have not been delivered to the present manufacturers. The present appellants were making due entries in their RG 23 A part I as regards the receipt of inputs and in RG Part II as regards the credit of duty paid by them. Such inputs have been shown to have been utilized in the manufacture of final product on which the excise duty stand paid. The payments for the raw materials was being made through cheque Infact in the case of S B Packaging while dealing with the assessee's stand that there is nothing in the said diary to link the appellants with the entries made therein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such invoices stand diverted. Similarly, while dealing with an identical issue, the Hon'ble Punjab and Haryana High Court in the case of CCE, Chandigarh vs. Neepaz Steels Ltd. [2008 (230) ELT 218 (P&H) has discarded the Revenue's stand that there was non-receipt of inputs inasmuch as the vehicle numbers shown in the invoices were found to be that of scooters, motor -cycles, mopeds which are incapable to transport huge quantum of iron and steel items. The Hon'ble High Court observed that inasmuch as the payments for the material were made through cheque, the inputs shown were reflected in the records and were used in the manufacture of final products and in the absence of factual finding that raw material was directed to some other destinat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties with intention to allow inadmissible Cenvat credit to the others. Entire case of M/s. Jagriti Plastics was non-maintenance of proper accounts for which they have been penalized to the extent of Rs.25,000/-. If that be so, the allegations and findings in the present case that they have passed on inadmissible Cenvat credit to the present appellants without actually supplying the inputs cannot be upheld. 14. I also find favour in the appellants plea that the Revenue has not adduced any evidence to show that if the manufacturing units have not received the inputs from the registered dealers how they have manufactured their final product which has been cleared on payment of duty. There is neither any allegation nor evidence to show such pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the statement of driver and affidavit of the drivers and has come to a conclusion that there is not a single transaction mentioned in the records of Jagriti Plastics that the goods have not traveled from the registered dealer to the manufacturing unit without proper invoices. Accordingly, he has held that department has failed to prove that the goods have not traveled along with invoices and cash has been received in lieu of cheque. Inasmuch as the allegations and findings in the present case are based upon the same very facts and circumstances which has been considered by the adjudicating authority in the above referred matter and has been found to be invalid for reliance and as the Revenue has not brought to my notice that the said o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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