2016 (10) TMI 131

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....ioner (Appeals), New Delhi in which he has set aside the order passed by the original authority dated 21.1.08. 2. The assessee is registered for the manufacture of thinners and phosphate Chemicals falling under heading 38.14 of the Central Excise Tariff. During the search operation conducted by the Central Excise officers on 23.3.06, it was found that no manufacturing activity was happening in the asseessee s factory and no machinery was found. There were also no workers and electrical connections. Shri Sunil Kumar Marwah, partner admitted in his statement that no manufacturing activity took place. He also stated that no material was purchased by him but cenvat credit was taken on the basis of bills mostly issued by M/s. Jagriti Plastics....

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....nd in the premises. Further no evidence of manufacture on job work basis has also been brought on record. (ii) Evidence unearthed in the investigation into the procurement of goods with the owners of some of the vehicle numbers given in the documents points to non-transportation of the inputs to the assessee. For example, vehicle No. DL-1L-1418 has been found to be registered in the name of Police Commissioner and vehicle No. DL _L 0469 and DL-IL 8023 were not fit to transport the goods. (iii)The Revenue has also relied upon various case laws to the effect that it is not possible to establish every link in the chain of clandestine activity. 5. Heard Shri G R Singh, learned DR appearing for the Revenue and Ms. Seema Jain, learned ad....

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....have been supplied by M/s. Jagriti Plastics. There is nothing on record to show that investigations having been undertaken against M/s. Jagriti Plastics for supply of material and other suppliers. The financial transactions involved in purchasing inputs from M/s. Jagriti Plastics as well as other suppliers have not been looked into. The most pertinent point to investigate would have been to probe cash flow back from the respondent to the supplier, substantiate the fact of non-receipt of inputs. 7. Revenue s case is totally silent about the sale of finished goods by the respondent. Invoices were found indicating sale of finished goods to various buyers. Under the circumstances, to sustain the allegation of no manufacture, Revenue is expec....