2011 (9) TMI 708

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ant from Reliance Industries indicating that CBFS can also be used as fuel was discarded, the matter being of technical nature, that should have been considered by both the authorities below.  But they failed to do so. He further submits that there is a certificate from Friends Forging Pvt. Ltd. indicated that CBFS can be used as substitute to furnace oil. 1.2 Prayer of the learned Counsel is that when duty has been paid there should not be levy of penalty. 2.1 Learned Jt. CDR on the other hand points out that pleading of the appellant has no legs to stand when they did not receive CBFS at all in their factory but paper credit was enjoyed on fake documents. Such a fact is clear from Para 1 of show cause notice in both the cases. He a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1 Show cause notice mde clear that it has a foundation to make allegation. Firstly the appellants did not receive inputs and secondly inputs in question claimed to have been used was not usable on the basis of technical report issued by a Government Department and a Public Sector. The appellants did not seek cross examination of the authorities who had issued technical report when that went against it. They also failed to lead evidence to claim genuineness of transition of goods from origin to destination. The Appellate Authority recorded all averments of the appellants and found that in absence of evidence to discard the allegation in the show cause notice, adjudication was sustainable.  4.2 In the certificate issued by Friends Forgi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the appellant to satisfactorily explain receipt of goods as well as use thereof following the judgment of the Hon'ble High Court of Madras in the case of Alagappa Cements Pvt. Ltd. vs. CEGAT, Chennai - 2010 (260) ELT 511 (Mad.). When the appellant failed to prove it made its claim fatal. On merits, the appellants do not succeed in its appeal on both counts. 6. So far as penalty aspect is concerned it is submission of the appellants that duty was paid before issuance of show cause notice for which penalty should not be imposed. Such a plea does not sustain following Apex Court decision in the case of UOI vs. Rajasthan Spg. & Wvg. Mills - 2009 (238) ELT 3 (S.C.). Therefore, it is not possible to waive penalty fully. 7. After dictation o....