2017 (1) TMI 791

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....by limitation, vitiating the whole proceedings. 2. The brief facts are that M/s Kisan Sahkari Chini Mills Ltd, (hereinafter referred to as the unit) are engaged in the manufacture of V.P. Sugar & Molasses falling under Chapter sub-heading No. 17 of the schedule to the Central Excise Tariff Act, 1985. On examination of their records by the team of audit officers of Central Excise Department, it was found that they were clearing used brass tubes without payment of duty to M/s Multimetal Ltd., Kota (hereinafter referred to as MML), for conversion into new brass tubes on the strength of their delivery notes. After conversion of used brass tube into new brass tube, MML returned entire quantity to the appellant on payment of duty, on the value....

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....on payment of duty to the tune of Rs. 3,08,533/- and Rs. 250116/- respectively, in respect of clearances of above mentioned used brass tubes on the ground that the appellant had availed credit on these brass tubes earlier, that the used tubes were wrongly cleared without payment of duty to MML; that the credit was again taken on same tubes when received back after remade into new tubes from MML; that Notfn.214/86 was not applicable as the appellant did not comply with the requirements of the said notfn, for sending the goods for job work; that MML paid duty on full value of remade tubes which was taken as credit and that the credit was taken twice on the same tubes. 4. Both the show cause notices were adjudicated as mentioned above and t....

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....condition precedent, being the assessee had taken Cenvat credit at the time of acquisition of the capital assets. The allegation of Revenue in the SCN, that the appellant have taken Cenvat Credit is vague and without reference to any records. It is further contended that the contention raised in the first reply, after the audit, before issue of SCN that the appellant had removed the used Brass Tubes under delivery challans for job work, have not been found to be untrue. It is further admitted fact of Revenue that the transaction was duly found recorded in the books of accounts maintained in the ordinary course of business. In this view of the matter the whole case of the Revenue is made out on presumptions and as such, the extended of limit....