TMI Blog2014 (6) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ue any challan for sending goods to job workers and the goods after finishing were directly sent to customer’s premises from the job worker as is clear from the reply to question Nos. 17 to 20 respectively. The inspection of Chartered Engineer shows that the machines/machineries are old and rusted, there was very low consumption of electricity, workers as low as five in number and the diesel engine was not operating condition. Admittedly, the Director of the Company was present during inspection. Thus, prima-facie, it is revealed that the applicant indulged in irregular availment of cenvat credit on inputs without receiving the input materials or processed materials in their factory for manufa cture of finished goods and passed the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the said job workers were not found to have been engaged by the applicant. The Chartered Engineer who conducted inspection in the presence of Director of the Company, supported the findings of the investigation, which shows that the machines/machineries are old and rusted and there was very low consumption of electricity and there were only five workers and existence of non- operating diesel set etc. The inputs suppliers of the applicant during investigation clarified that the transportation was arranged by the applicant. No supplier has ever arranged for transportation from the factory / office premises of the applicant. The department summoned the transporters who were claimed to have brought the inputs meant for delivery at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he plant and machineries were got inspected by Shri Sital Kr. Banerjee, and the machineries installed were 40 in number, most of which installed in the year 1999 and that all the machines were in excellent good working condition. The contention is that the applicant is engaged in the manufacture of engineering machines/equipments in strict conformity with design and specifications and the input raw materials are directly sent to the premises of job workers and after manufacturing, on receipt, such machines/equipments on assembly were sent to the customer on payment of duty and cover of invoices issued. The contention is that due to fluctuation of electric supply, they have installed 30 KVA Diesel Power Generator Set and the Generating Sets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n unless the machines are properly utilized through a planned manufacturing process and standard sequence of operations including testing and control supported by the proper documentation and records. 3.4 The contention of the ld. A.R. is the most of the transporters did not respond to the summons, the few appeared before the Department and clarified that they have arranged for the transportation, they had only acted as the commission agent. The contention is that none of them had actually transported the goods to the factory premises even though they had issued the transport challans (Bilti in common parlance). The contention is that they even accepted that although the invoces/Bilti were consigned to the factory address of applicant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials or processed materials in their factory for manufa cture of finished goods and passed the same purported credit to various consignees in the guise of duty paid on their finished final products, when the goods were neither manufactured in their factory nor manufactured through job workers. The applicant did not follow the procedure prescribed under Notification 214/86 CE dated 25.3.1986. In these circumstance s , the applicant is not able to make out a prima facie case for total waiver of pre deposit. The applicant has also pleaded financial hardship. However, they could not produce any evidence in the regard. The Hon ble High Court of Andhra Pradesh in the case of Commissioner of Central Excise, Guntur vs. Shri Chaitanya Educati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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