2004 (9) TMI 469

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....d Modvat credit of Rs. 7,42,649/- on these goods to the respondents by holding that same were never used in the manufacture of OE parts by them during the period January 1995 to December, 1998. The Commissioner (Appeals) has reversed the order-in-original of the adjudicating authority and allowed the Modvat credit by holding that the allegations of the Revenue regarding the non-utilisation of these goods by the respondents in the manufacture of O.E. parts and disposal of the same in a clandestine manner in the grey market did not stand proved. 3. The learned SDR has contended that the utilization of the GP sheets by the respondents as inputs in the manufacture of OE parts does not stand proved and as such, no Modvat credit could be av....

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....heets in the manufacture of those parts and thereby wrongly availed higher Modvat credit on file GP sheets. But in our view, there is no tangible evidence to substantiate these allegations against the respondents. The general opinion through letters supplied by the O.E. manufacturers named above to the department was that they supplied the specification of the raw materials to their vendors including the present respondents, to be used by them in the manufacture of motor vehicle parts to be supplied to them and that the main raw material specified was HR/CR sheets, but that could not lead to an irresistible conclusion that O.E. parts supplied to them were manufactured only from CR/HR sheets and not from GP sheets by the respondents. No mech....