Cenvat credit on job-work inputs sustained where documentary records outweighed untested transporter statements and showed regular movement

Cenvat credit cannot be denied merely on transporter statements where the assessee supports clearance for job work with delivery challans, job-worker records, receipt-back evidence, and statutory accounts. Uncorroborated oral statements, especially when not subjected to cross-examination despite request, cannot prevail over consistent documentary evidence showing receipt, return after job work, and duty-paid clearance. On the record, the inputs were duly sent for job work and the credit was not shown to be irregular, so the demand and penalties were unsustainable.

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Issues: Whether Cenvat credit could be denied on the basis of transporter statements when the assessee produced delivery challans, job-worker records, and evidence of receipt back of the inputs after job work.

Analysis: The dispute turned on a conflict between oral statements of transporters and the documentary record produced by the assessee. The record showed that the job worker acknowledged receipt and return of consignments after job work, and the goods were accounted for in the statutory records and cleared on payment of duty. The transporter statements were not tested by cross-examination despite request, and in such a situation untested oral statements could not outweigh the documentary evidence. The evidence on record supported the conclusion that the inputs had been sent for job work and the credit availed was not shown to be irregular.

Conclusion: Cenvat credit was correctly availed by the assessee and the demand, penalty, and connected penalties were not sustainable.

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