TaxTMI 
TaxTMI 
2017 (7) TMI 473
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.... Excise Tariff Act, 1985. PVC Tape is one of the inputs of M/s MSSL, and is an output product of the other appellant M/s NPIL. Further M/s NPIL is one of the suppliers of PVC Tape to M/s MSSL. As per the terms of purchase, the goods are dispatched by M/s NPIL on FOR basis to M/s MSSL. 3. On the basis of some information with the Revenue that M/s NPIL was engaged in illegal availment of Cenvat Credit on CP 172 Resin which is one of their major inputs and have diverted their input and/or major part of the input. Pursuant to this investigation, a Show Cause Notice dated 02/01/2007 was issued to M/s NPIL demanding Cenvat credit amounting to Rs. 1,13,76,073/- illegally availed by them on 9,83.205 tonnes including 15.5 tonnes seized and detained of CP 172, SC Resin purchased during the period 1st November, 2001 to 06th February, 2006 and also a demand of Cenvat Rs. 77,586/- on 7.314 MT of PVC along with interest and penalty. 4. Based on the investigation in the case of M/s NPIL, Revenue also investigated in the affairs and records of M/s MSSL. In the course of investigation, statement of few vehicle owners, six in total, were recorded pertaining to the invoices of M/s NPIL after about ....
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....ction of wiring harness from cuts, wear & tear. Further, statement of Shri Rakesh Kumar Sharma, Unit Head of appellant herein, of M/s Motherson Sumi Systems Ltd., at Sector 6, Noida, was recorded under Section 14 of the Central Excise Act, 1944 and he, inter-alia, stated that he is the overall in-charge. The purchase department generates the order to the supplier and as per delivery date, material was received in the unit. The entry was made at the gate and then the material goes for quality check, if materials was found OK, GRIN was made and material was transferred to stores for further action. In case, material was not found OK, it was rejected. Issuance of material was done as per the material requisition slip. All these activities were looked after by the stores head of the unit and purchase department. He further stated that their units are equipped with ERP systems and all the concerned persons are capable to operate it. So far the variation in the vehicle nos., as per their computerized records and as per the manual record prepared by the security staff at the gate, he stated that they have never given any instructions for maintenance of any manual record at the gate by the....
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....xcise Rules, 2002. 8. The appellant- M/s Motherson Sumi Systems Ltd., & Mr. Rakesh Kumar Sharma contested the Show Cause Notice and lead evidence that they actually received goods from M/s NPIL for which they prepared a proper GRN in their stores and thereafter issued the same for production. They have also made payments through the banking channel, for the supplies received from M/s NPIL and further having used the said inputs for manufacture of dutiable products, cleared the same on payment of duty. So far as the statements of the vehicle owners are concerned with respect to 8 invoices out of the total 91 invoices, it was said that the statements are based on memory, after the lapse of 2 to 3 years without any reference to any records maintained by those transporters and as such do not call for any adverse inference. In the course of investigation of the factory of the appellant - M/s Motherson Sumi Systems Ltd., Revenue did not find anything in regular course except variation in few vehicle nos. in the manual register maintained by the security staff, which is not the register maintained by the management and as such does not call for any adverse inference. In view of the prope....
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....n found in the truck nos. He further states that Revenue have selectively relied on the evidence on record, which is not permissible. The Revenue have totally ignored the overwhelming evidence of receipt of goods by M/s Motherson Sumi Systems Ltd., from M/s NPIL wherein M/s Motherson Sumi Systems Ltd., maintain proper records of receipt quality check entry in the store, issue for production and thereafter clearance of taxable output on payment of duty. It is further not been found that the amounts paid through the banking channel by the appellant - M/s MSSL to the other appellant - M/s NPIL have been received back by M/s Motherson Sumi Systems Ltd., in cash, clandestinely. It is also not the case of Revenue that the payments received by M/s NPIL through banking channel wherein immediately withdrawn in cash. He further stated that with respect to the earlier show cause issued to M/s NPIL dated 02/01/2007, referred to hereinabove, the matter reached before this Tribunal and vide Final Order No.541 546/2011 Ex by a Division Bench of this Tribunal dated 04/07/2011, reported at 2012-TIOL-277-CESTAT-Delhi. It has been held by this Tribunal in para 5.1 of the order that during the period ....