2015 (10) TMI 2138

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.... duty paid HDPE/PP Granules. The appellant is purchasing duty paid inputs and availed credit on the same. They supplied the inputs to their Jamshedpur unit under the cover of challan under Rule 4 (5) of Cenvat Credit Rules. They also supplied such inputs to another unit in Jamshedpur. They receive back the Woven Fabric under challan thereafter it is cut and stitched and sold to customers. They discharged appropriate Central Excise duty at that time and maintained records. Sometimes finished goods were cleared from Jamshedpur unit also. The Revenue conducted certain investigation in July 2003 and came to the finding that since they have no facility to manufacture HDPE/PP Sacks at Pangaon they are not entitled for the credit of duty on inputs....

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....e also filed monthly returns showing all these details. Thus, the credit has been rightly availed by them on various inputs. 2. On the other hand, the learned AR reiterated the findings of the Original Authority and stated that the Original Authority relied on various documents and statements to arrive at the conclusion and the appellant unit has no capacity to manufacture the impugned goods as the machinery was not operative. He pleaded that full transaction is only on paper to avail the Cenvat credit. 3. Heard both the sides and examined appeal papers. In the appeal, the appellant made certain factual points which could not be considered by the lower Authority as no personal hearing could be conducted in spite of opportunities given....

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....ecords and sales tax records. Further, in the year 2003-2004, the appellants purchased a total quantity of 409.000 M.T. of granules 78.2813 fabrics and which were accounted for by them in the Central Excise records and records maintained by commercial tax department there was no discrepancy as held by the Commissioner in the impugned order". 4. The appellants also contended various other findings by the lower authority based on facts. We find that correct appreciation of the factual position is required to arrive at the proper decision. The various accounts maintained by the appellant are to be cross-checked with the allegations made in the show cause notice. Apparently this could not have been done as the original order was passed ex-pa....