2017 (1) TMI 1231

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....ne M/s S.K.Garg & Sons who is a first stage dealer who got registered with the department w.e.f. 05.12.2003. An investigation was conducted at the premises of M/s S.K. Garg & Sons on 14.08.2007, it was found that the premises was locked and godown is also non-existence. Enquiries were made with the landlord who stated that M/s S.K. Garg & Sons has vacated the premises in 2003 itself and thereafter he never let out the premises to anybody. On the basis of investigation and on the basis of statement of M/s S.K. Garg & Sons, the registration of M/s S.K. Garg & Sons was cancelled on 21.07.2008 retrospectively. Further investigation revealed that the respondent before me have procured goods from M/s S.K. Garg & Sons and availed cenvat credit on ....

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.... that they have physically received the goods on invoices and said goods have been used in manufacture of the final goods. Therefore, cenvat credit cannot be denied. It is also submitted that no investigation was conducted with the transporter of the goods whether they have transported the goods to the respondent and no investigation was conducted at the end of the manufacture suppliers of the goods. In that circumstances, cenvat credit cannot be denied. It is also submitted that M/s S.K. Garg & Sons filed ER-1 returns with the department and the same have been accepted by them in that circumstances also cenvat credit cannot be denied. They further submit that the Ld. Commissioner (A) has examined the issue and allow the credit where the ma....

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....e issue held as under:- "4. After considering the submissions made by learned AR and on perusal of the record, I find that the invoices issued by M/s S.K. Garg and Sons giving details of manufactures as well as manufacturer supplier of the goods. No investigation was conducted at the end of manufacturer supplier as well as transporter of the goods to reveal the truth. The case has been made against the respondent on the presumption that supplier-dealer is not existing firm therefore, there was only paper transaction. Cases cannot be booked merely on the presumption and assumption; there should be corroborative evidence to prove the allegations. In this case, allegation has not been supported with tangible evidence. Therefore, learn....