2016 (11) TMI 1329

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....d. DR appearing for the respondent, I find that the appellant is engaged in the manufacture of alloys and non-alloys steel ingots. They procured their raw material from manufacturer M/s Aggarwal Steel Rolling Mills and Metal Industries (hereinafter referred to as M/s ASRM). The raw material so purchased by the appellant was defective CTD rounds /bars which acted as a waste material for the appella....

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....ithout actually supply of the goods and M/s ASRM had diverted best goods in the open market and also has procured the raw material from an alternative  source. Accordingly proceedings were i ted against the present appellant for denial of Cenvat Credit availed by them, by way of issuance of show cause notice. The said proceedings resulted in passing of an order by the original adjudicating au....

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.... use high valued goods for the purpose of melting in his furnace. 6.  However, on being questioned as to whether there is any evidence showing clearance of prime quality CTD bars of M/s ASRM to any other buyer or as to whether Revenue has show any other alternative source of procurement of raw material by the present appellant, Ld. DR fairly agreed that there is no such evidence on record. ....

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....tic market. But there is virtually no evidence to that effect. Further, no proceedings stand initiated against M/s ASRM.  As regards the present appellant, they have shown receipt and utilization of raw material in their factory and have taken the benefit of Cenvat credit based upon the cenvatable invoices issued by registered dealer. Statements of authorised representative of the appellant ....