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TMI Blog2018 (9) TMI 1494X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of Polyester (Filament) Texturised Yarn (PTY). The DGCEI conducted raid in both the units on 8.9.2006. On the basis of information, it was found that the Unit-I was indulging in fraudulent availment of Cenvat credit by showing bogus purchases of PTY without actually receiving the same in their factory. The Unit-II was indulging in clandestine removal of PTY and also sold goods to various dealers in the market whereas the invoices were issued in the name of Unit-I. During the course of investigation, various reports were resumed and the statements were recorded. Thereafter a show cause notice was issued to the appellant-assessee to deny the Cenvat credit of Rs. 58,68,003/- to Unit-I on the ground that Unit-I had allegedly taken fraud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 11AB of the Central Excise Act, 1944. iv. I confirm the demand of Central Excise amounting to Rs. 25,442/- along with interest under Section 11A and Section 11AB respectively of Central Excise Act, 1944 against M/s.Woolways India Ltd., (Unit.II) Sahnewal, Ludhiana. Rest of duty demand on account of clandestine removal is vacated. v. I imposed a penalty of Rs. 25,442/- upon M/s. Woolways India Ltd., (Unit.II) Sahnewal, Ludhiana. (vi) I also order appropriation of an amount of confirmed demand of Rs. 25,442/- and Rs. 7,48,245/- against M/s. Woolways India Ltd., (Unit.II) Sahnewal, Ludhiana and M/s.Woolways India Ltd., Industrial Area-A, Ludhiana respectively out of Rs. 15,00,000/- already deposited by M/s. Woolways India Ltd., (Unit.I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding to job work as the goods were PTY. DGCEI had recorded statement of only four job workers out of 20 job workers and during the course of cross examination all had deposed in favour of the appellant-assessee to the effect that they had received PTY for job work. It is his submission that the persons whose statements recorded and found against the appellant were crossed examined, some of them did not appear for cross examination and others have stated in favour of the appellant-assessee. He further submitted that PTY had been used in the manufacture of finished goods which were either exported or cleared locally. The test reports of samples drawn at the time of export were relied upon by the adjudicating authority and accepted the plea of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 (SC) and the decision of the Tribunal in the case of Bhor Rubber Factory vs. CCE-2006 (196) ELT 149 (Tri.-Mum.) and CCE vs. Rishabh Velvellen Pvt. Limited- 2006 (201) ELT 473 (Tri.-Del.). He further submits that Shri Umesh Syal continued to work in the unit and was entrusted with the responsibilities of the authorized signatory. Therefore, his statement is not admissible evidence. With regard to the statement of Shri Anil Jaiswal, who retracted his statement during cross examination is not permissible. 7. Heard both sides and considered the submissions. 8. On careful consideration of the submissions made by both sides, we find that the two issues emerge: (a) Unit-I is not entitled to avail Cenvat credit on the ground that they have ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed less than the duty paid on PTY, therefore this allegation is not sustainable. In view of the above discussion, we hold that the credit of Rs. 58,68,003/- cannot be denied to the Unit-I. Therefore, on this ground the Revenue‟s fails and assessee„s appeal succeeds. Issue No.2 10. With regard to the demand of duty on account of clandestine removal by Unit-II, we find that the adjudicating authority has examined the issue and observed as under:- "3.67. However, a cross-check of entries in Annexure B1 & B2 has revealed that as per S.No.42 of Annexure BI WIL-II have cleared 4015.25 kg of PTY to M/s.Abhay Trading Co. vide challan No.2575 dt.13.06.2006 for which no corresponding invoice has been issued. The corresponding and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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