TaxTMI 
TaxTMI 
2022 (1) TMI 395
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....Tax Appellate Tribunal, South Zonal Bench, Bengaluru ('Tribunal' for short) in Final Order Nos.21433-21437/2018, whereby the Tribunal has partly allowed the appeals confirming the duty and penalty of Rs. 3,57,314.05 and Rs. 1,00,000/- respectively. 2. In this appeal, the appellant-assessee has raised the following substantial questions of law:- 1) Whether the impugned final order of the Hon'ble Appellate Tribunal is correct and legally sustainable in denying the credit without following the precedential decision passed by it in the Appellant's own case? 2) Whether the impugned final order of the Hon'ble Appellate Tribunal is correct and legally sustainable in denying the substantial benefit of credit on the basis of appreciation of inc....
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.... Bengaluru - II Division visited the premises of Job Worker and seized certain documents on the allegation of clandestine manufacture and removal of excisable goods. The officers recorded the statements of various employees, authorized signatories, Chairman, Customers, Transporters and Raw Material Suppliers. Based on the aforesaid investigation and the statements recorded, show-cause notice dated 05.07.1996 was issued to the Job Worker as well as to the appellant herein. On considering the reply filed by the appellant, the proposal made in the show-cause notice was confirmed by the competent authority/respondent No.1. 4. Being aggrieved, the appellant as well as the Job Worker filed separate appeals before the Hon'ble Tribunal which came ....
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....ent on job work to M/s. MCPL and mere non-maintenance of records and nonobservance of procedures shall not take away the substantial right to avail the credit. Despite this order of the Tribunal was placed on record, without there being any adjudication on this issue sans giving any valid reasons, has held that the MODVAT credit availed by the appellant was wrong and as such, the duty and penalty imposed on this MODVAT credit of 88.637 metric tons of Tin Sheets during the period 1991-92 to 1993-94 is valid. Learned counsel has placed reliance on the following judgments in support of his claim that inputs reaching Job Worker directly not through the assessee's factory is not in violation of Rule 57F of the Central Excise Rules, 1944 ('Rules'....
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....er of the said final products are accompanied by any of the documents and it is evidenced that the payment of duty on such inputs of capital goods has been paid. 9. There is no dispute that the payment of duty of inputs has been paid on these inputs/Tin Sheets. The only allegation is that the goods have directly reached the Job Worker not through the assessee's factory. In the case of Indorama Textiles Ltd., supra, the Hon'ble Bombay High Court referring to the judgment of the Hon'ble Apex Court in the case of Jaypee Rewa Cement, supra, has held thus:- "8. The fact of electricity being intermediate goods used in manufacture of final product by Respondent No.1 is not in dispute before us. It is nowhere contended that M/s. IRSL cannot be a....
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....e analyzed the material aspects on record. M/s ECPL no doubt has sent the inputs directly to the Job Worker - M/s MCPL, it is an admitted fact that M/s MCPL has no infrastructure availability for manufacture of Crown Corks and the said Tin Sheets after printing and cutting have reached M/s ECPL. If so, merely for the reason that the said diversion of goods directly to the Job Worker was not informed to the department is not a ground for denial of the CENVAT credit. Moreover, in para 7.8 of the impugned order, the Tribunal has not assigned any valid reasons to confirm the order of the respondent No.1. The cryptic order passed on this aspect making bald observations is not in accordance with law and the same cannot be sustained. In the circum....