2011 (3) TMI 1102

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....onfirmed against the manufacturing unit. It is seen that the said manufacturing unit imported POY and paid the countervailing duty in respect of the same. However, instead of taking the modvat credit in the manufacturing unit modvat credit account, the credit was availed by the dealer unit. Thereafter, the goods were sent to the job workers and received back by the manufacturing unit. The duty was paid on the same out of the modvat credit availed by the dealer unit.   Revenue s case is that inasmuch as the manufacturing unit did not avail any cenvat credit, the duty on the goods manufactured by the job worker and received back by them should have been paid in cash. It is seen that the appellants took a categorical stand before the a....

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....ied is as to whether the credit was actually availed by the dealer unit and as to whether the said availment was on the basis of eligible input documents. For the said limited purpose, I remand the matter to original adjudicating authority.   4. In the case of second appeal, demand stands confirmed against the dealer unit to the extent of Rs. 3,44,467/-. The said duty stands paid by the appellant. As such, by dispensing with the condition of pre-deposit of penalty, I decide the appeal. The said demand stands confirmed on the ground that the dealer unit has cleared the damaged Yarn to their various customers under the cover of their invoices by reversing the credit so availed by them. Inasmuch as their customers were not in a positio....

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....rt consignment at the lower value. The balance damaged Yarn was still lying in their factory and thus, there cannot be any one to one co-relation between the goods cleared by them with the Yarn received by them. As regards insurance, he submits that even after claiming insurance claim, they could still sell the remainant damaged Yarn at a lower value.   6. I find that the Revenue s case is based on assumption and presumption. Admittedly, the dealer unit has raised the invoices selling the damaged Yarn at a lower cost and by reversing the proportionate modvat credit. Revenue has not conducted any investigation at the buyers end as regards use of damaged Yarn by them. There is virtually no evidence on record to reflect upon the fact t....