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TMI Blog2016 (12) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... also raised. A demand was also raised for capital goods credit taken on a piece of machinery which was not found in the premises of the appellant on the day of the visit of officers. 2. The appellants are engaged in the manufacture of pressure vessels, condensers dish ends, etc., and also engaged in the fabrication at site. The officers of preventive visited the factory of the appellants on the information that the appellants are availing Modvat credit on inputs which were not received in the factory but were directly transported to the sites and utilizing the said credit for payment of duty on the clearances of goods effected from the factory. Accordingly, a show-cause notice demanding duty of Rs. 8,86,054/- along with interest was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y are pressing the said order on four counts only: (i) the demand of duty on the credit taken on pipes bought from the manufacturer M/s.Man Industries (ii) Demand of reversal of capital goods credit of Rs. 7,953/- which were not found in the premises at the time of visit of the officers. (iii) The demand of duty on scrap said to have been generated in the job workers premises but not returned to the appellants. (iv) Cenvat Credit taken on welding electrodes amounting to Rs. 42,531/- on the strength of Bills of Entry allegedly not received in the factory of the appellants but delivered at M/s.Indus Engineering Co. Tarapore. 3.1 The learned Counsel argued that in the show-cause notice it has been alleged that the material ie., MS/CS Saw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f accounts for the F.Y.1994-95 and same is reflected in the Balance Sheet for the year 1994-1995." 3.3 As regards the demand of scrap, amounting to Rs. 36,867/-, which was allegedly not received back from job workers, it was argued that no worksheet of the quantity on which duty has been demanded has been given. It was argued that the quantity has been calculated on presumption. The learned Counsel was asked to produce the job work documents for the said job work but he could not produce the same. 3.4 In so far as the demand of Rs. 42,531/- availed for the consignment of welding electrodes is concerned he argued that the said goods were received in the factory of the appellant. 4. The learned AR relies on the impugned order. He read out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificate of Chartered Accountant is not based on the visit to the factory. He pointed out at the material time, the said capital goods were not available in the factory. The said goods were not found in the factory as per the statement of the partner of the company given on the day of visit of officers. 4.4 As regards the demand of duty on credit allegedly generated at job workers premises and not returned to the appellants, it was argued that in any process of processing of scraps would be generated and since the appellant had not quantified the same demands was made on the basis of statements of Managing Partner of the company. He pointed out that in the earlier stage of adjudication, the appellants had themselves given a fresh calculat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 1 147/ 16.10.97 Fabrication and supply of parts of Horton spheres column 7208.11 12 198000 1286 2 148 / 16.10.97 -do- 7208.11 12 198000 1286 3 151 / 16.10.97 -do- 7208.11 6 99000 1286 Total 30 495000 I find that the description, job number, value as well as sub-heading number are different in the invoices received from M/s. Man Industries and the invoices made by the appellants. I find that the heading 7208.11 reads as follows:- 72.08 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated - Plates and universal plates: 7208.11 Exceeding 5 mm in thickness The description cannot possibly cover pipes or any product manufactured out of pip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led on the strength of two bills of entry which were allegedly not received at the factory at Andheri but delivered at Tarapore, the appellant had not placed on records any evidence to establish that said goods were received by them in their factory. The revenue has relied on the delivery challan of M/s.Rajesh Clearing & Forwarding Agents, which shows delivery of material at Tarapore. In the absence of any evidence to establish receipt of goods by the appellants the credit of the same cannot be allowed. 6. In view of the above, the appeal in so far as it relates to demand of duty on scraps generated at job workers premises is allowed. The appeal for the rest of the items is dismissed. Penalty and interest are revised accordingly. Appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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