TMI Blog2015 (4) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, they have shown receipt and utilization of raw material in their factory and have taken the benefit of Cenvat credit based upon the cenvatable invoices issued by registered dealer. Statements of authorised representative of the appellant as also of the dealer are to the effect that inputs stand supplied to them under the cover of proper cenvatable invoices. Statement of representative of the M/s. ASRM is to the effect that during the relevant period lot of their product came out to be defective and rejected and as such, same was sold after discharging the central excise duty leviable thereon. Admittedly, the appellants need the raw material for the production of their final product and if, as per the Revenue, such material has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Revenue entertained a belief that the transaction between M/s. ASRM and the registered dealer and further dealers and the appellants were covered only by the cenvatable invoices, without actually supply of the goods and M/s. ASRM had diverted best goods in the open market and also has procured the raw material from an alternative source. Accordingly, proceedings were initiated against the present appellant for denial of Cenvat credit of ₹ 58,615/- availed by them, by way of issuance of show cause notice. The said proceedings resulted in passing of an order by the original adjudicating authority and upheld by Commissioner (Appeals). 4. Appellants contention is that entire case of the Revenue is based upon assumptions and presump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tailer can survive if more than 80% of its final product were held to be defective/ rejected / scrap. 8. Apart from the fact that above findings of the authorities are admittedly based upon some circumstantial evidence and the financial calculations. I find that the Revenue has alleged M/s. ASRM was selling its final product to other buyers in the domestic market, but there is virtually no evidence to that effect. Further, no proceedings stand initiated against M/s. ASRM. As regards the present appellant, they have shown receipt and utilization of raw material in their factory and have taken the benefit of Cenvat credit based upon the cenvatable invoices issued by registered dealer. Statements of authorised representative of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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