CENVAT credit on pig iron sustained where non-receipt was unproved and no corroborative evidence showed diversion of inputs.

CENVAT credit on pig iron could not be denied merely because vehicle particulars and transport documents were absent, where the inputs were duty paid, the goods were essential for manufacture of non-alloy ingots, and no corroborative evidence showed diversion or non-receipt in the factory. The Tribunal held that the allegation of bogus receipt was not proved on the record, and the credit was therefore allowed.

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Issues: Whether CENVAT credit on pig iron could be denied on the allegation that the inputs were not actually received in the factory and were taken only on the strength of invoices.

Analysis: The Tribunal noted that the inputs were duty paid, pig iron was a major input for manufacture of non-alloy ingots, and there was no evidence on record to show diversion of the goods or receipt from some unidentified source. The departmental case rested on the absence of vehicle particulars and transport documents, but no corroborative material was produced to establish non-receipt in the factory. The Tribunal also accepted that the finished goods could not have been manufactured without the impugned input and that the adjudicating authority had returned a reasoned finding based on the record.

Conclusion: The allegation of non-receipt of inputs was not proved, and the CENVAT credit could not be denied; the impugned order allowing the credit was upheld.

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