2015 (10) TMI 2138

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....s 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. Accordingly, the show cause notice was iss....

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....se 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 to the appellant. Though the appellant pleads t....