2019 (1) TMI 1028

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....ed against the appellant on the ground that they had not taken CENVAT Credit immediately on receipt of the inputs in the factory, but did so only based on the invoices raised by M/s. BHEL during March 2009 for the period from April 2007 to February 2009. Proceedings had been initiated against the appellant for demand recovery of such wrongly taken Credit amounting to Rs. 5,00,321/- with interest as also imposition of penalties. The Original Authority confirmed the demand proposed in the Show Cause Notice vide Order dated 30.03.2012. In appeal, the Commissioner (Appeals) vide impugned Order upheld the Order passed by the lower authority. Hence, this appeal. 3.1 Today when the matter came up for hearing, Ld. Advocate Ms. P. Jayalakshmi app....

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....e paid to the assessee for carrying out job work. In this connection, the principal manufacturer raises invoice for the scrap as if the same has been sold to the assessee. The present invoice on whose strength the notice have taken credit was one such invoice where BHEL had adjusted the payment to the job worker. Other than the above commercial adjustment, it appears that the scrap material has nothing to do with the manufacture of final products by the assessee. . . . 6. After considering the submissions and going through the records, I find that show cause notice itself has stated that according to the appellant what was purchased by them from BHEL or what was invoiced by BHEL were leftover MS plates. The show cause notice als....

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.... the situation, if an assessee has assessed the goods in a particular manner and has explained the same, if that is not to be accepted by the Revenue, some investigation or verification was definitely required. If the same was not felt necessary at the time of issue of show cause notice, at least at the time of adjudication process, the original adjudicating authority, when a claim was made about the leftover material and its use, could have got the facts verified and given the verification report to the assessee and thereafter proceeded to adjudicate. In my opinion, the adjudicating authority when he accepted the reply to the show cause notice by the assessee since he had no reason to disbelieve the assessee. What can be said is that at th....