TMI Blog2018 (10) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... uted with kabari scrap to maintain their statutory records - The two allegations of the Revenue itself are contrary to each other which shows that proper investigation was not conducted to establish the fact whether the re-rollable scrap was not reached in the factory or the same has substituted by the appellant with kabari scrap. Benefit of doubt goes in favour of the appellant/assessee - cenvat credit cannot be denied on the basis of assumption and presumption and without any specific allegation. Moreover, no investigation has been conducted to establish the fact that the appellant/assessee has received kabari scrap in their factory instead of re-rollable scrap. As the investigation is deficient, in that circumstances, we hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the period 01.04.2003to 08.08.2005, the appellant/assessee has taken wrongly cenvat credit on re-rollable scrap and other scrap received from various dealers on the basis of the various vehicles involved in transportation of the goods and it was alleged that it was merely a paper transaction. In these set of facts, a show cause notice was issued to both the assessee/appellants and the matter was adjudicated. The ld. Adjudicating authority ordered for recovery of cenvat credit to the tune of ₹ 33,31,024/- out of the total cenvat credit of 1,13,25,749/- sought to be denied in the show cause notice and imposed penalty on both the appellants/assessee. Against the said order, both sides are in appeal. The appellants/assessee are in appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has substituted the re-rollable scrap. In fact, when re-rollable scrap has been reached to their factory, therefore, without investigation, it cannot be alleged against the appellants/assessee that they have not received the re-rollable scrap in their factory. Now, burden cast to the Revenue to prove that how the re-rollable scrap was substituted by kabari scrap which Revenue has failed to do so. Therefore, the impugned qua denying cenvat credit to the appellants/assessee is to be set aside. 4. On the other hand, the ld. AR submits that during the course of investigation and from the various statements recorded during the course of investigation it has been observed that the vehicles are used in transportation of re-rollable scrap are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact whether the re-rollable scrap was not reached in the factory or the same has substituted by the appellant with kabari scrap. In that circumstance, benefit of doubt goes in favour of the appellant/assessee. Consequently, the cenvat credit cannot be denied on the basis of assumption and presumption and without any specific allegation against the appellant/assessee. In that circumstance, in the case of Ranjiv Alloys Ltd.(Supra). relied upon by the ld. AR is not applicable to the facts. 7. Moreover, no investigation has been conducted to establish the fact that the appellant/assessee has received kabari scrap in their factory instead of re-rollable scrap. As the investigation is deficient, in that circumstances, we hold that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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