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2016 (4) TMI 1159 - CESTAT CHANDIGARH

2016 (4) TMI 1159 - CESTAT CHANDIGARH - TMI - Denial of CENVAT credit - Iron & Steel Product - investigation in the premises of dealer - whether the denial of credit justified on the ground that the dealer was non-existent and only paper transaction took place? - Held that: - no investigation was conducted at the end of manufacturer supplier/transporter and the available evidences establish that the assessee has received the goods in the absence of any contrary evidence. On record, the cenvat cr .....

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Advocate- for the appellant Shri, Sanjay Jain, A.R - for the respondent ORDER Considering, the fact that the appeal itself has been listed today for final disposal. In that circumstances, the application for early hearing of the appeal as become infructuous, the same is dismissed as infructuous filed by the appellant. 2. Both the assessee as well as revenue has filed the appeal before this tribunal against the impugned order. 3. The facts of the case are that the assessee is engaged in manufact .....

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the premised that there was a paper transaction and the goods were not actually moved to the assessee. The matter was adjudicated, the adjudicating authority confirmed the demand on account of denial of cenvat credit on the invoice issued by the M/s Sidh Balak Enterprises to the assessee. The said order was challenged by the assessee before the Ld. Commissioner (A). The Ld. Commissioner (A) has granted the benefit to the appellant on the invoices which have been issued by the manufacturer suppli .....

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sal. 4. The Ld. Counsel for the assessee submits that in this case the demand has been confirmed against them only on the ground that the dealer who has supplied the goods to the assessee was found to be non-existent during investigation. At the time when the dealer issued the invoice, the dealer was having registration from the department and it is the duty of the revenue to verify whether the dealer having godown/office for registration with the department. As the dealer was having registratio .....

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wherein the appellant has admitted that they have received the goods and the same has been utilised in manufacture of final product. The payments were made through a/c payee by cheques and goods have been duly entered in statutory records. In that circumstances, the cenvat credit cannot be denied. It is further submitted that in similar investigation in the case of M/s Accurate Auto Product Ltd. vide Final Order No. A/52019-52020/2015 dated 24.06.2015, this tribunal hold that in the absence of a .....

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lied on the decision of this tribunal in the case of Neelkanth Steel & Agro Industries Final Order No. A/ 54432/2014 dated 29-10.2014. In support of the revenue appeal, he submits that after transit sale the manufacturer supplier have to enter the name of the assessee in the invoice and name of the dealer as shown is separately as dealer. In transit sale, the dealer cannot issue the invoice. Therefore, the Ld. Commissioner (A) has felt an error for allowing the credit. 6. Heard the parties a .....

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es but statement of the appellants was recorded wherein appellants has categorically stated that they have received the good and taken the cenvat credit thereon and payment thereon has been made through account payee cheque. From the investigation it was also revealed that Sh. Sachin Aggravanshi was managing his affairs in the name of M/s Sidh Balak Enterprises who was registered as first stage dealer but they are not having any office or godown to store the goods. From the investigation, it was .....

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no goods have been delivered to them. In these set of facts, the show cause notice was issued to M/s Jitan Steel Industries as well as M/s Accurate Auto Products pvt. Ltd. who procured the goods from M/s Jitan Steel Industries Pvt. Ltd. against the invoices issued by M/s Sidh Balak Enterprises. The show cause notice was adjudicated. Cenvat Credit was denied confirming the allegation that goods were not moved only invoices were issued. Consequently, demand of duty was confirmed against M/s Accur .....

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t available. I have gone through the said case. In that case the tribunal has observed as under: "when the appellant had no office or godwon, it is difficult to believe as to how and when the goods had been stored. In view of this, the burden of proof that the goods had actually been received by the appellant company would shift to them. The appellant company in this regard has not produced any evidence. In view of this, I hold that the transactions of the appellant company with M/s Sidh Ba .....

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taken cenvat credit is the manufacturer. Therefore, facts of the said case are not applicable to the facts of this case. Reliance in the case of M/s Sidh Industries (Supra) by the Ld. AR is of o help as in that case the registration certificate of the dealer was rejected on the premise that neither the appellant is having any godown or office. Therefore, issue of entitlement of cenvat credit was not there. Further, I find that the case laws relied by the appellant are similar to the facts of the .....

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