CENVAT credit denial on capital goods required fresh verification of receipt, reversal, and use as paper machine accessories.

Denial of CENVAT credit on capital goods required fresh verification where the assessee claimed excess credit reversal, disputed non-receipt of some goods, and asserted that the remaining items were used as accessories to the paper machine. The existing adjudication had not examined the factual assertions or supporting evidence, including the Chartered Engineer's certificate. The matter was therefore remanded for reconsideration by the adjudicating authority after review of the records and evidence.

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Issues: Whether denial of CENVAT credit on capital goods required fresh verification on the appellant's claims regarding excess credit reversal, receipt of goods, and use of the capital goods as an accessory to the paper machine.

Analysis: The disputed credit comprised amounts said to arise from excess availment over invoices, non-receipt of goods covered by certain invoices, and the balance relating to capital goods allegedly supported by a Chartered Engineer's certificate. The existing adjudication did not consider the appellant's factual assertions and supporting materials. In the interest of justice, those issues required verification by the adjudicating authority after examination of the records and evidence.

Conclusion: The matter was remanded to the adjudicating authority for fresh decision on the disputed CENVAT credit issues after considering the appellant's submissions and evidence.

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