2023 (10) TMI 424

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..... ndent (AR) for the respondent ORDER This appeal of M/s Kanade Anand Udyog Pvt Ltd is concerned with denial of CENVAT credit of duty discharged on procurement/import of 'capital goods' between 2005-06 and 2007-08 on the ground of lack of evidence of having been received at the designated factory of the appellant at 42, Morivili, MIDC, Ambernath to the extent Rs. 20,94,889 remaining in dispute aft .....

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..... impugned capital goods. 3. The pleas of the appellant, in proceedings initiated by notice of January 2011, were made in the specific context of the factory having ceased to function by the time of the audit visit in August/September 2008 and absence explained away as owing to transfer of the machinery to sister units, as well as deployment of spares and consumables, and challenge to the allegatio .....

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..... certainment at the time of audit visit, non-inclusion in return filed with income-tax, and production of certificate as well as furnishing of explanations only after commencement of adjudication during which verification had been conducted on behalf of the original authority. We find that the first appellate authority had allowed the claim in relation to 'welding machines' on the basis of document .....

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..... sufficing to deny credit also demonstrates failure to cite the authority under which the appellant was required to intimate such transfer. 7. That the other 'capital goods' were spares, that may have been incorporated in the machinery for which those were intended, or used consumables has not been controverted by the lower authorities. Nor has any authority, under CENVAT Credit Rules, 2004, been .....

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..... nts set to take credit - one on document and the other on availability of 'capital goods' - which, in the absence of supporting evidences, defies logic as having occured. It would appear that the entire exercise was half-hearted and relying entirely on presumptions which is a characteristic that is anathema to adjudicatory proceedings. 10. For the above reasons, the impugned order is set aside an .....

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