2015 (11) TMI 1168

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....se appeals by the Revenue challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench, the principal contention is that the stand of the Assessee (Respondent before us) that there is revenue neutrality, should not have been accepted in the absence of evidence on record. 2. Mr.Oak appearing on behalf of Revenue in support of this appeal submits that there was no evidence on record proving that inputs on which credits were taken, were merely exchanged by the assessees with associate companies. This was a clear case of diversion of these inputs without reversal of CENVAT credit taken. In these circumstances, the impugned orders of the Tribunal are perverse. There are conflicting and contradictory....

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....h CENVAT Credit is taken. This is in order to meet the urgent requirement of raw materials. Though the documents and books are privately maintained, yet on search and seizure, it was found that the goods were never diverted to any third parties but were utilized Inter-se. This argument as canvassed before the Tribunal is accepted and Mr.Shah would submit that the same is accepted by applying revenue neutrality doctrine. The Tribunal has accepted the version of the assessee by holding that the tanker register maintained by the transporter and the statements of the transporters would indicate that inputs have been delivered at the places of these companies and none have been diverted to factories of third parties. There is also no evidence on....

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....t considered a similar controversy and questions. The Tribunal found that once the inputs have been delivered only at the factories of the assessees from the associate companies, then no loss occurs to revenue. The assessees would derive no benefit by not reversing CENVAT credit on the inputs, when sister concerns are also eligible to take CENVAT credit. Therefore, in the absence of cogent and reliable evidence particularly on the diversion of these inputs, the Tribunal applied the doctrine or principle of revenue neutrality. We do not see how the same was inapplicable in the admitted facts and circumstances. 5. Even the order-in-original and the paragraph which was relied upon by Mr.Oak does not indicate that any other material or evide....