TMI Blog2022 (12) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... e made. It is an undisputed fact that all the purchases were duly recorded in the statutory books of the Appellant and the goods were also found to be entered in the statutory records of the Appellant. There is no evidence which can show that the records maintained by the Appellant are not correct. Only on the basis of statement of some of the transporters, the credit is sought to be disallowed whereas the statements are in isolation with any corroboration. Therefore the entire demand of excess CENVAT Credit in absence of any corroborative evidence is nothing but based on presumption which is not permissible under the law. The Appellant is duly registered with the Department and there is no allegation in the impugned order of non-subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Tariff Act, 1985. They are holding Central Excise Registration and are availing CENVAT Credit in respect of inputs used in the manufacture of final products. A Show Cause cum Demand Notice dated 07.11.2014 was issued to the Appellant and its Director alleging wrong availment of CENVAT Credit on MS Round Cutting during the period from December 2012 to January 2013 amounting to Rs.7,64,588/-. It is the case of the Department that the said MS Round Cutting had actually not been received in the Appellants factory and had not been utilized for manufacturing of their finished goods. It was alleged that the aforesaid goods were claimed to be received from the supplier M/s. Shree Ganesh Forging Company but not actually received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Act, 1944; (ii) I also disallow the irregular input service credit of Rs.2,037/- (Service Tax Rs.1,978/-, Education Cess Rs.40/- and Secondary Higher Education Cess Rs.19/-) (Rupees Two thousand thirty-seven) only, irregularly availed and utilized by the Noticee No.1 on input service (on GTA) during the period from March 10 to June 12, as detailed in the Show Cause Notice No.176/ADC/BOL/14 dated 07.11.2014, which is inadmissible and the same is recoverable along with interest under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AA of the Central Excise Act, 1944; (iii) I impose a penalty of Rs.7,66,625/- (Rupees Seven lakh Sixty Six thousand Six hundred and Twenty Five) only on the Noticee No.1, in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued for manufacture of dutiable final products. He vehemently argued that there is no allegation of any flow-back and there is no inculpatory statement brought on record to substantiate receipt of Cenvatable invoices without receipt of goods thereto. 5. Ld.Authorized Representative appearing for the Department justified the impugned orders and prayed that the Appeal be dismissed being devoid any merits. 6. Heard both sides and perused the Appeal records. 7. The first issue involved in this case is whether the Appellant had availed irregular CENVAT Credit as arrived by the Department holding that it was paper transaction without receipt of raw materials. Second issue is whether under the circumstances and the facts on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant has willfully suppressed the fact from the Department in order to evade payment of duty. As such, extended period of limitation cannot be invoked in the present case. In this case it is a fact on record that during the course of investigation, no shortage or excess of the goods were found in the premises of the Appellant. In that circumstance, duty is cast on the Revenue to ascertain the fact that if the Appellant has not received the goods, then from where they procured the goods and used the same for manufacture of dutiable finished goods which have been cleared on payment of duty. Moreover, the Department has relied upon the statements of the transporters, but opportunity to cross-examine them to ascertain the truth has not bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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