TaxTMI 
TaxTMI 
2017 (10) TMI 200
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....the issue is common, therefore all the appeals are disposed by a common order. 2. The brief facts of the case are that the appellants namely, M/s. Swati Store well and M/s. Chemiplast Industries are engaged in the manufacture of HDPE Pipes and HDPE Granules is their raw material. M/s. Karan & Company is the supplier of HDPE Granules, located at Parwanoo, supplied the goods to manufacturer-buyers. The case of the Revenue is that, as the manufacturers M/s. Karan & Company has not received the HDPE Granules in their factory, on the basis of ICC check post records, at the entry point and as per the records of sales tax department, the goods have never crossed the border of Himachal Pradesh. Therefore, M/s. Karan & Company has not received th....
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....he appellants namely M/s. Swati Storewell and M/s. Chemiplast Industries. In that circumstance, Cenvat credit cannot be denied to them, in the light of the decision in the case of this Tribunal in the case of Himalayan Pipe Industries Vs. CCE, Chandigarh - 2013 (293) ELT 739 (Tri. Del.). He further submitted that as no investigation was conducted with the transporters that whether the goods have been received by M/s. Karan & Company, penalties cannot be imposed on them. 4. On the other hand, ld. AR opposed the contention of the ld. Counsel and submits that as per the records of the sales tax department the goods in question have not crossed the barrier at Punjab for entering in Himachal Pradesh. Therefore, he submits that the goods in qu....
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....egard to penalties, I find that in this case, the allegation is that M/s. Karan & Company has not received inputs in question, is on the basis of verification done at the check post barrier at the entry point of State of Himachal Pradesh. Except for this, no other evidence has been brought on record through verification from the transporters or suppliers of inputs to M/s. Karan & Company whether those goods have been diverted or received by M/s. Karan & Company. Merely on the basis of the check point barrier report it has been alleged that the goods have not been received by M/s. Karan & Company. As no full-proof investigation has been conducted by the Revenue in the matter, the allegation is without any basis that M/s. Karan & Company has ....
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....g been made to the supplier by cheques/drafts, the sole reliance on such sales tax department, cannot be held to be justified. In the present case also, we find that the appellant had taken a categorical stand before the authorities below that the payments for such receipt of raw materials were made by cheque/draft and the Revenue has not made any inquiry from the supplier of the raw materials. It is also seen that appellants having taken a categorical stand of payments having been made by cheque/draft, it was for the Revenue to prove otherwise. They have not even bothered to approach the supplier of the raw materials so as to find out the correct position. In such a scenario, Revenue's sole reliance on the absence of ST XXVI-A forms, a....