Cenvat credit penalty set aside and matter remanded for fresh verification of invoices and supporting records.

Irregular availment of Cenvat credit was examined on the basis of invoices showing product details, volume, rate, brand, packing and quantity. The record did not disclose any deliberate act justifying penalty, and the supporting originals were stated to be available for scrutiny. Verification of those invoices and documents was treated as necessary before any adverse conclusion, and natural justice required a fresh adjudication after such examination. The penalty was therefore set aside and the matter remanded for de novo consideration, with liberty to the appellant to seek return of the original records.

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Issues: Whether the penalty imposed for alleged irregular availment of Cenvat credit was sustainable, and whether the matter required remand for verification of the supporting invoices and documents.

Analysis: The appellant produced invoices containing particulars such as product name, volume, rate, brand, packing, quantity and other relevant details. These particulars required verification by the Original Authority. The record did not disclose any deliberate act on the part of the appellant warranting imposition of penalty. Since the supporting originals were available before the Tribunal, the matter called for fresh examination of the documents by the adjudicating authority. The principles of natural justice required a de novo decision after such verification.

Conclusion: The penalty was set aside and the matter was remanded for fresh adjudication after verification of the documents, with liberty to the appellant to seek return of the original records.

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