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TMI Blog2018 (11) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... Tariff Act. They are availing the benefit of Cenvat credit of duty paid on various inputs as also capital goods. 2. Their factory was visited by the Central Excise officers on 06/09/2006, who conducted various checks and verifications. No discrepancies were found in the stock of raw materials or finished goods. However the officers also verified the various excise records maintained by the appellants and found that they were obtaining the raw materials/inputs such as M.S. Plate, Shape & Section and Angles etc. from various dealers, in respect of which the appellants were undertaking inspection of the same and was maintaining inspection records. Verification of the inspection reports maintained by the appellants led the Revenue to believe t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept in the open area being heavy and bulky in nature and payments of freight are generally made by the company. 4. The Revenue also investigated the matter at the end of the dealers and recorded their statement. None of the dealers stated that they did not supply material to the appellant or the material shown to have been sold by them was diverted from their premise to any other place. They also produced their stock register to submit that the materials supplied by them to the appellants were a part of their stock. Some of the dealers also stated that the supply were made on FOR basis and were inclusive of freight. 5. On the basis of the above the appellants were issued a show cause notice dated 02/06/2009 alleging that the raw material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... khs stand imposed on Shri Ranjan Adlakha, director of the company under Rule 26 of the Central Excise Rules, 2002. The said order of Commissioner of Central Excise, Ghaziabad is impugned before Tribunal. 8. We have heard Shri Bipin Garg and Ms. Stuti Saggi learned advocates appearing for the appellants and Shri Mohd. Altaf learned A.R. appearing for the Revenue. 9. After going through the impugned order, we find that the entire case of the Revenue rests upon the missing quality control reports. As per the Revenue the appellants were testing the raw material before being used for the manufacture of their final product. The appellants have a Quality Control Department and maintain record of such testing done by them, in the form of inspecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein all of them admitted having sold and sent the material to the appellants. The result of the investigations conducted by the Revenue does not advance their case inasmuch as all the deponents have repeatedly contended that the raw materials were received by them and were put to use. 12. Apart from that, the appellants have strongly contended that they have used the said raw material in the manufacture of their final product which was cleared on payment of duty. Admittedly the final product cannot be manufactured in vacuum and require the raw materials. It is not the Revenue's case that such raw materials were obtained by the appellants from some other alternative sources, neither is it their case that the consumption of raw materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the absence of any evidence to show that the raw materials were procured from other sources, Revenue's allegation that no inputs were received and credit was availed on the basis of invoices only cannot be upheld. The said decision of the Tribunal stand confirmed by the Hon'ble Punjab and Haryana High Court when appeal filed by the Revenue was rejected reported as Commissioner of Central Excise, Chandigarh vs. Shakti Roll Cold Strips Pvt. Ltd. 2008 (229) E.L.T. 661 (P & H). Reference can also be made to the decision of the Tribunal in the case of M/s Uttam Sucrotech Ltd. vs. CCE, Lucknow Final Order Nos.70941-70942/2018 dated 15/12/2017, CCE, Kanpur vs. Good Earth Steel Pvt. Ltd. 2018 (9) G.S.T.L. 177 (Tri.-All.) and Cabcom India & Ors ..... X X X X Extracts X X X X X X X X Extracts X X X X
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