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TMI Blog2023 (4) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... cise invoice, on which CENVAT Credit is availed by them & the said goods sent to M/s Asit Iron Foundry Pvt. Ltd., Battikiri, Howrah for job work & casting them into desired shapes and sizes, in accordance with the drawings supplied by them which form part/components of the final product manufactured by them. 2.1. That in the course of audit, certain irregularities/inadequacies were noticed by the department, which resulted in issuance of a Show Cause Notice demanding reversal/recovery of CENVAT Credit availed on the said goods besides consequent legal action. 2.2. The Show Cause Notice dated July, 26, 2011, alleges contravention of Rules 3 & 4 of the CENVAT Credit Rules, 2004 read with Rule 2(k) thereof, seeking recovery of irregular CENVAT Credit of Rs. 6,85,620/- (Six Lakhs Eighty Five Thousand Six Hundred Twenty Rupees Only) and Education Cess & Secondary Higher Education Cess amounting to Rs.13,711/- (thirteen thousand seven hundred eleven rupees only) & Rs.536/- (Five Hundred Thirty Six Rupees Only.) respectively. 3. It is the case of the department that in response to the said Show Cause Notice, the assessee was not able to produce the required evidence in support of their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quently obliterated. It is evident from the carbon copies of challans No. AIF/L/33/08-09 dated 09.01.09, AIF/L/32/08-09 dated 09.01.09, AIF/L/31/08-09 dated 02.01.09, AIF/L/30/08-09 dated 19.12.08 etc that the I.C. Nos. & quantities are written subsequently in ink. Moreover, two challans are prepared under the same challan No. AIF/L/31/08- 09, one of which contains the number 31 amended subsequently. The noticee's claim that the job challans sent by the job worker contain the challan numbers under which the goods were sent to them for proceesing, is not true, as evident from the fact that all carbon copies of challans of M/s Asit Iron Foundry Pvt. Ltd., contain the job work challan No. differently hand-written in ink later on. Similarly, all job work challan No. of the noticee contain the serial numbers deleted/ amended/ obliterated and handwritten subsequently. Therefore, it is quite evident that both challan numbers are mutually adjusted to draw a relation with each other. In view of the above, it is crystal clear that those records do not authentically relate to the movement of Pig Iron to and from the so-called job workers, rather, those are prepared at a later date, in a bid t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002; or (c) removed on payment of duty for home consumption from his factory or (d) used in the manufacture of goods by another job worker for further use in any of the manner provided in clause (a), (b) and (c) as above (2) the said supplier produces evidence that the said goods have been used or removed in the manner prescribed above; and (3) the said supplier undertakes the responsibilities of discharging the liabilities in respect of the Central Excise duty leviable on the final products." 5. For failure to demonstrate adherence to legal prescriptions, the authorities below did not find sufficient merit in the appellants claim. They held the entire issue to be violative of the provisions of law, thereby denying the appellants the benefits sought & upholding the Show Cause Notice. 6. A careful reading of the aforesaid provision of law would reveal that the process set out therein cannot be merely washed off as a hollow formality or a procedural lapse, rather its adherence is essential to the claim of substantive legal benefit as envisaged in the notification. The prescription entitling for availment of the exemption is in effect a mandatory requirement, in the absence of whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion clause in the show cause notice in terms of the proviso to Section 11A is upheld. Besides, it is an admitted position that the appellant could produce no document whatsoever, in support of their contention for credit availment for the year 2006-07. Moreover, they were shorn of any facility to process the pig iron within their factory premises. The impugned order in appeal records a clear finding that no effort was made by the appellant to counter the specific examples cited by the adjudicating authority in support of his finding that the evidence/documents tendered in support were concocted, fabricated and an afterthought. The Hon'ble Supreme Court in the case of Eagle Flask Industries Ltd, -2004(171) ELT 296 (S.C.) has held that filing of a declaration as envisaged in an exemption notification/conditions are not merely procedural or an empty formality. It may be pointed out that the same is the foundation for availing the benefits under the notification. Such stipulations are therefore, with attached consequences which in the present case are in the nature of denial of benefits under the said notification. 8. As regards the appellants plea of having been registered under BIFR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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