TMI Blog2012 (7) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... eral Manager of the factory, who was present, stated that a quantity of 686 bags of imported HDPE granules had not been received in the factory but, nevertheless, Modvat credit was taken on that quantity also at the behest of the Management. The General Manager’s inability to produce documentary evidence of actual utilization of any part of the imported granules in the manufacture of HDPE bags was also recorded in the mahazar. Department has not substantiated their case insofar as the MODVAT credit of Rs. 2,51,399.25 is concerned. The total credit taken by the party on the three consignments of HDPE granules covered by the three bills of entry is Rs. 3,63,319.95, out of which credit of Rs. 2,51,399.25 was found to have been utilized. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain specific directions vide Final Order No. 1948/2005, dated 14-11-2005 [2006 (200) E.L.T. 111 (Tribunal)] in Appeal No. E/117/2004. The specific direction contained in the Final Order was correctly noted by the original authority, vide para-7 of the de novo Order-in-Original which reads thus : 7. I have gone through the records of the case. The Hon ble CESTAT vide its order No. 1984/05 dated 14-11-2005 remanded back the case for de novo adjudication by original adjudication authority with the following directions. (a) The verification report of the Superintendent is to be furnished to the assessee. (b) The documentary and statutory evidence already produced by the assessee should be reconsidered in the re-adjudication ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0-1995. The relevant entries were made in RG 23A Parts-1 2. 5. On 12-10-1995, the Central Excise Range Superintendent visited the appellant s factory and conducted physical stock verification of the raw materials and also conducted a scrutiny of statutory records. A quantity of 4,725 Kgs. of HDPE granules of Indian origin was found in the factory and the same was noted in a mahazar; that no evidence of the imported raw materials having been received in the factory was also noted in the same mahazar. In the mahazar, it was also noted that the General Manager of the factory, who was present, stated that a quantity of 686 bags of imported HDPE granules had not been received in the factory but, nevertheless, Modvat credit was taken on that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for payment of duty on their final product on 5-10-1995, 6-10-1995 10-10-1995. It is, therefore, not in dispute that HDPE bags were manufactured and cleared on payment of duty between the dates of import of the granules and 6-10-1995. The department has not adduced any evidence to show that any HDPE granules of Indian origin were procured by the assessee and used in the manufacture of the HDPE bags. In this scenario, there is no justification for the department to take the stand that no part of the imported raw material was used in the manufacture of the final product and to say that Cenvat credit of CVD paid on the imported granules to the extent of Rs. 2.5 lakhs was utilized by the assessee. Therefore, the department has not substant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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