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2016 (6) TMI 404 - CESTAT NEW DELHI

2016 (6) TMI 404 - CESTAT NEW DELHI - TMI - Denial of credit - transport documents and the check post details raised a serious question regarding the bonafidiness of the transport of duty paid inputs lying in stock at their Gurgaon unit and later transported to the new Bhiwadi unit - Held that:- There is no dispute regarding the raw material account and other statutory records maintained both at Gurgaon unit and Bhiwadi unit. When the licence was surrendered for Gurgaon unit, the officers conduc .....

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vehicles or arranged vehicles. I find that the discrepancy in the truck numbers alone cannot lead to the conclusion of non-transport/non-receipt of duty paid inputs in Bhiwadi unit in the absence of clear evidence regarding improper diversion of the said items. The material receipt record and the statutory records maintained at Bhiwadi cannot be easily discounted.

Certain duty paid inputs have in fact been cleared to some buyers as such. There has been no verification to check up the .....

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al of credit is mainly sought to be made on various purported discrepancies in the GR forms, date of invoices and actual receipt of goods in Bhiwadi unit. Though certain enquiries conducted by the Department raised certain suspicion in this case, there is no categorical conclusion to the enquiry through a finding that the duty paid inputs have been diverted to place other than their Bhiwadi unit or the production and other records of Bhiwadi unit do not reflect the correct position. Too many un- .....

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I. The main appellant [M/s S. Pal Enterprises Pvt. Ltd.] are engaged in the manufacture of wires and cables liable to Central Excise duty. They were also availing credit of duty paid on inputs and capital goods. They had a manufacturing unit at Gurgaon which was closed down w.e.f. 01/6/07. They have started a new factory at Bhiwadi, Rajasthan for the manufacture of wires and cables. The issue in present appeal relates to the availment of Cenvat credit amounting to ₹ 36,43,618/- by the appe .....

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thority vide his order dated 24/10/2013 denied the said credit and imposed equal penalty on the main appellant. He also imposed penalties of ₹ 3,00,000/- and ₹ 1,00,000/- on the Directors of the main appellant and the transporter respectively. On appeal, the Commissioner (Appeals) confirmed the original order by rejecting all the 3 appeals. Aggrieved by this, the present appeals were filed. 2. The learned Counsel for the appellant submitted mainly on the following points :- (a) The G .....

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the copper wire transferred were cleared as such to M/s Shriram Cables on payment of duty and there is no dispute on such clearance. No enquiry has been conducted at the recipient end in this case ; (d) Rule 10 of Cenvat Credit Rules 2004 has no application in the present situation. Even if applied, there is no requirements for prior permission under the said rule; (e) The denial of credit in the present case is solely based on the discrepancy in the lorry numbers figuring in GR forms and allege .....

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numbers. Regarding questions raised on the genuineness of the check post stamp, it was pleaded that the lorry numbers are not entered or not signed by the concerned clerk in the check post does not make a case for proved non-transport of goods via the said check post ; (f) The receipt of inputs have been duly accounted for in the statutory records as well as private records of Bhiwadi unit. Goods have been manufactured using the inputs. Some inputs are cleared as such to the buyers. In the prese .....

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ts for transport. The check post is manned by Government authorities and they have stated that the stamp appearing on the transport document appears to be not genuine as it did not contain the vehicle number, check post name and the signature of the dealing clerk. 4. Heard both the sides and examined the appeal records. The denial of credit for the main appellant is mainly on the ground that the transport documents and the check post details raised a serious question regarding the bonafidiness o .....

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credit availability etc. and finally the surrender of certificate was accepted on 18/2/2008 ; (b) the truck numbers in the GR forms issued by the transport were apparently not correct. This by itself does not establish the non-transport of goods. The claim of the appellant that the usual practice of the transporters is to indicate some truck numbers as per the initial plan or to get business and later transport the goods through other own vehicles or arranged vehicles. I find that the discrepanc .....

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