2018 (6) TMI 632

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....they are taken together for decision. 2. The brief facts of the case are that M/s Saini Alloys Pvt. Ltd. were engaged in the manufacture of M.S. Ingots, M.S. Casting/Alloys Castings. They were availing facility of Cenvat credit on inputs, capital goods and input services. It appeared to revenue that the price at which scrap was purchased by M/s Saini Alloys Pvt. Ltd. as inputs from M/s Laxmi Steels and M/s Jindal Ispat, Aligarh, there was over valuation of said scrap and M/s Saini Alloys Pvt. Ltd. purchased the said overvalued inputs and therefore it appeared to revenue that M/s Saini Alloys Pvt. Ltd. availed higher Cenvat credit as compared to Cenvat credit that could have been availed on the inputs if the said inputs were not overvalued ....

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....the inputs from the manufacturer under proper invoices on which the said manufacturer had paid duty thereon and the dealers had supplied the said inputs to the them under their proper invoices showing the duty, as paid by the manufacturer and the said inputs have been consumed in the manufacture of final products at their end. They further submitted that neither the duty paid on the inputs at the manufacturer's end was disputed nor the value or price at which the said manufacturer had sold the same to the dealers, was in dispute. They further submitted that valuation of inputs at the receiving end is not sustainable in law. They further contended that the said show cause notice was issued by invoking the extended period and the same was not....

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....no dispute that the goods were not transported from the premises of the registered dealers of the appellant premises nor the goods were not received by the appellants and never used in the manufacture of Final products. He further submitted that the entire case of revenue is based on assumptions & presumptions and without any documentary evidence. He has submitted that the said show cause notice is not sustainable. Relying on the said ruling by Hon'ble Allahabad High Court wherein Hon'ble Allahabad High Court has ruled that it would be impractical to require the assessee to go behind the records maintained by the first stage dealer and that the assessee is required to act with all reasonable diligence in its dealing within the meaning of Ru....