2014 (10) TMI 126

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....s used to make the readymade garments was duty free till 31.03.2003 and the same was made chargeable to excise duty from 01.04.2003. Therefore, as per Rule 9A of CENVAT Credit Rules, 2002, the transitional provisions for availment of CENVAT Credit for textile article were introduced. The appellants filed declaration with the Central Excise department on 23.05.2003 and 03.06.2003 claiming one time deemed CENVAT credit of Rs. 41,48,337/- showing that the appellants are having a stock of 11,15,825 LMts of grey and processed fabrics as on 31.03.2003 in terms of Notification 35/2003-CE dated 10.04.2003. The said declaration was filed by the appellants in terms of Rule 9A(2) of the CENVAT Credit Rules, 2002 to avail deemed credit on the grey fabr....

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....efore, no investigation was required to be conducted by the department at the end of the suppliers as the appellants have not taken CENVAT Credit on the basis of invoices issued by the suppliers. Therefore, the impugned proceedings are to be set aside and consequently, the impugned order is to be set aside. 5. On the other hand, the learned A.R. submits that in this case the suppliers were found to be non-existence or they have stated that they have not supplied the fabrics to the appellants. Therefore, the proceedings have been rightly initiated against the appellants. 6. Considered the submissions made by both the sides and perused the records. 7. After going through the facts of the case, I find that in this case duty on the fab....