Cenvat credit on "other charges" remanded for fresh appraisal of evidence after inadequate examination by the authority.

Denial of Cenvat credit on services booked under the head "other charges" was found unsustainable where the adjudicating authority had not properly examined the evidence and explanations said to have been produced. As the record showed inadequate appraisal of the material, the matter required fresh consideration in de novo proceedings. The confirmation of reversal of Cenvat credit was set aside, and the dispute was remanded for a fresh decision after appreciating the evidence and after granting the appellant an opportunity of personal hearing.

---

---

Issues: Whether the denial of Cenvat credit on services reflected under the head "other charges" was sustainable, and whether the matter required reconsideration on the evidence produced.

Analysis: The demand arose from the appellant's inability to furnish a break-up of the head "other charges". The record indicated that the adjudicating authority had not adequately examined the evidence and explanations said to have been placed before it. In these circumstances, the matter required a fresh appraisal of the material in de novo proceedings.

Conclusion: The confirmation of reversal of Cenvat credit to the extent of Rs. 2.92 crores was set aside and the issue was remanded to the adjudicating authority for fresh decision after appreciating the evidence, with an opportunity of personal hearing to the appellant.

---