TaxTMI 
TaxTMI 
2013 (9) TMI 1015
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....ged in the manufacture of copper powder. The respondents availed the benefit of Modvat credit scheme. They declared copper waste and scrap as one of their inputs. The department initiated proceedings against the respondents on the ground that during January, 1996 to June, 1997 the scrap on which they have availed credit could not have been used by the respondents in the manufacture of their final product since the scrap was in the nature of mixed copper scrap consisting of cliff/candy, cliff berry, etc. and since the respondents did not have the facility for oxidization which is the pre-requisite for converting such type of scrap into copper powder. The department carried out investigation and recorded statement of concerned persons and the....
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....ve received scrap in the form of millscale or sludge of copper under the 25 invoices, though there is no evidence to support his claim. The contention of the ld. Advocate is that before the ld. Commissioner (Appeals) they had demonstrated receipt and disposal of the inputs under reference was duly documented and it was issued for production as per the issue slip, copies of which are enclosed with the written submissions and the same has been recorded by the ld. Commissioner (Appeals) in Para 6 of his order. The ld. Advocate also submitted that the entire case is based on presumption and assumption. The contention of the ld. Advocate is that the ld. Commissioner (Appeals) has considered all the aspects which have been raised by the departmen....
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....n their factory for the manufacture of their final product 'Copper Powder' upholding the allegations made in the show cause notice that material received was not in the form of copper scrap required by the Appellants. I find that the allegations made in the show cause notice were merely based on assumption that the copper powder can be manufactured out of raw material in the form of sludge and granules only. I find that the receipt of raw material in the Appellants' factory is not disputed. There is no evidence on record to prove that the Appellants had cleared the said input as such on payment of duty. There is also no case of clandestine removal against the Appellants nor is it alleged in the show cause notice that the said raw material w....