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of <h1>Appellate Tribunal rules in favor of M/s Vipul Copper Pvt. Ltd. on Cenvat credit admissibility</h1> <h3>Vipul Copper Pvt Ltd, Shri Kaluram Ramdayal Heda and Shri Natubhai Patel Versus C.C.E. -Ahmedabad-II</h3> Vipul Copper Pvt Ltd, Shri Kaluram Ramdayal Heda and Shri Natubhai Patel Versus C.C.E. -Ahmedabad-II - TMI Issues:1. Admissibility of Cenvat credit based on invoices of registered dealers.2. Allegations of fraudulent availment of credit without receipt of goods.3. Proper documentation and accounting requirements under Central Excise Act and Cenvat Credit Rules.Issue 1: Admissibility of Cenvat credit based on invoices of registered dealersThe case involved M/s Vipul Copper Pvt. Ltd. availing Cenvat credit facility based on invoices from registered dealers for raw material. The investigation focused on the transportation of goods from Delhi to Nadiad, raising doubts on the receipt of inputs by the appellant. The appellant argued that the goods did travel between Nadiad and Ahmedabad, and proper documentation, including octroi receipts, invoices, and accounting records, supported the receipt and utilization of inputs. The appellant contended that the department's case lacked evidence of non-receipt of goods at their factory, emphasizing compliance with statutory requirements for availing credit.Issue 2: Allegations of fraudulent availment of credit without receipt of goodsThe Revenue alleged that M/s Vipul Copper Pvt. Ltd. fraudulently availed Cenvat credit without physically receiving the inputs. However, the tribunal found no evidence of shortage/excess of inputs or finished goods at the appellant's factory. The investigation primarily relied on third-party evidence related to transporters and RTO check posts, without concrete proof of non-receipt of goods by the appellant. The tribunal emphasized that statutory records, including cenvat accounts and payment records, supported the receipt and utilization of inputs, dismissing the department's contention of credit denial based solely on third-party investigations.Issue 3: Proper documentation and accounting requirements under Central Excise Act and Cenvat Credit RulesThe tribunal highlighted the importance of complying with Cenvat Credit Rules 2004, emphasizing the receipt of goods by the manufacturer for availing credit based on invoices. It noted that the appellant had recorded the receipt and utilization of goods, maintained proper accounts, and made payments through cheques, meeting the prescribed requirements. Referring to precedents, the tribunal held that burden of proving non-receipt of inputs rested with the Revenue, and in the absence of conclusive evidence, denial of credit was unwarranted. The tribunal set aside the impugned orders, allowing the appeals filed by the appellants with consequential reliefs.This detailed analysis of the judgment from the Appellate Tribunal CESTAT AHMEDABAD highlights the complexities of the case, focusing on the admissibility of Cenvat credit, fraudulent allegations, and compliance with legal documentation and accounting standards under the Central Excise Act and Cenvat Credit Rules.
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