TaxTMI 
TaxTMI 
2017 (4) TMI 741
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.... clearing the said goods. After issue of show cause notice to confirm the duty liability as well as to impose the penalty, the appellants moved the Settlement Commission. The application was rejected on the ground that they were neither registered with the Department nor filed any returns. Against the order of the Settlement Commission the appellant filed Writ Petition in Hon'ble High Court of Delhi. The writ petition was dismissed by the Hon'ble High Court as being devoid of merit. Thereafter, the case was adjudicated resulting in the impugned order. The original authority confirmed Central Excise Duty demand of Rs. 54,09,363/-. He imposed penalty of equivalent amount under section 11AC of Central Excise Act 1944. The appellant paid full d....
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....d. AR submitted that there is absolutely no document indicating duty payment by the appellant towards their raw material and duty paid by M/s. M/s. Marvelous Impex on import of PVC raisin cannot be allowed as a credit to the appellant in the absence of clear documentary evidence of payment of duty involved by the appellant. The Ld. AR also submits certain case laws in support of his submission regarding ineligibility of appellant for credit. 4. We have heard both the sides and perused the appeal records. The only point for decision is the eligibility of Cenvat Credit on raw material (PVC raisin) used in the manufacture of battery separators. Admittedly, the appellant were not registered with the department and the manufacturing activity ....
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....ex imported PVC resin on payment of CVD duty. The Revenue established that some of these imported raw materials were used by the appellant in the clandestine manufacture of battery separators. The question now is whether the appellant in eligible for Cenvat Credit of CV Duty on such PVC resin. While the Revenue established the receipt of PVC resin by the appellant, nowhere in the findings any documents were noted, indicating such receipt is based on due documents and more importantly PVC resin procured by the appellant unit is on payment of said CV Duty to the importer - M/s. Marvelous Impex. The Cenvat Credit on PVC resin can be allowed to the appellant either on the documents in his possession indicating the duty paid purchases of such ra....
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....o non registration of the assessee. 8. Here we are dealing with the case of transaction without any document relating to duty paid receipt of PVC resin as raw material. If that being the case, the question of duty paid nature of such raw material cannot be ascertained. M/s. Marvelous Impex discharged CV Duty on the import does not automatically entitle the appellant for the credit of such duty. To repeat, Cenvat Credit can be availed only on documented receipt of duty paid inputs where the receipt for such duty payment on such raw material form evidence in terms of Rule 9 of Cenvat Credit Rules 2004. In the illicit transaction involving the raw material PVC resin, the question of having any documented receipt of such raw material and mor....