Cenvat credit cannot be denied under Rule 57E(3) without proof of fraud, suppression, or wilful misstatement.

Rule 57E(3) of the Central Excise Rules, 1944 could not be used to disallow Cenvat credit or supplementary invoices unless short levy or non-levy of duty was shown to have resulted from fraud, collusion, wilful misstatement, or suppression of facts. On the facts discussed, the Tribunal's order contained no finding or analysis of illicit removal of goods from the warehouse, and the necessary ingredients for invoking the rule were not established. The legal question was therefore answered against the appellant, and the appeal was not admitted.

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Issues: Whether Cenvat credit or supplementary invoices could be disallowed under Rule 57E(3) of the Central Excise Rules, 1944 where short levy or non-levy of duty was alleged to have resulted from fraud, collusion, wilful misstatement or suppression of facts.

Analysis: The appeal sought admission on the question whether the Tribunal had considered any material showing illicit removal of goods from the warehouse. In the absence of any finding or discussion in the Tribunal's order on illicit removal, and with no showing that the ingredients of fraud, collusion, wilful misstatement or suppression of facts were established, the rule could not be invoked to disallow credit or supplementary invoices.

Conclusion: The question was answered against the appellant, and the appeal was not admitted.

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