TaxTMI 
TaxTMI 
TaxTMI 
2022 (8) TMI 829
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....investigation has been initiated against the appellant. As per the allegation of the Revenue, investigation revealed that Appellant were using non-duty paid scrap for manufacture of their final products and in order to avail cenvat credit, obtaining duty paid invoices of raw material. Since the duty paid raw material as shown in the duty paying documents were not physically received in their factory for being used by them in or in relation to manufacture of finished goods, the Cenvat Credit, in such cases where inputs were actually not received and not used in the manufacture of final products and only duty paying documents were being received, was not admissible to them. Searches were carried out by the Officers at the factory premises as ....
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....wire bars to the manufacturers of articles of copper of Gujrat, Daman or Silvassa. The vehicles actually transported other goods and hence the stamps of the checkpost of Commercial Tax department were affixed on the transport documents. The investigations were also carried out with the RTO Check posts and the information furnished by the Joint Director of Transport, Gujrat state was examined vis-à-vis the details of the transportation appearing in the LRs of the transporters from Delhi to Nadiad. Such scrutiny revealed that in some cases only vehicles were found to have entered Gujrat. The statements of transporters and their staff were recorded. The statements of concerned persons of M/s Singhal Road Carriers brought out the facts t....
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....s never been examined or doubted. The Appellant's purchase and receipt is obviously from the registered dealer. It is not the case of the department that the goods though purchased from registered dealer, were directly consigned to the Appellant by the supplier from Delhi. Thus, the allegation/ finding that the material did not travel from manufacturer -supplier at Delhi to registered dealer at Nadiad cannot in any way conclude that the appellant manufacturer has not received the inputs form registered dealer at Nadiad. 2.1 He also submits that during the investigation, the appellant shown the Octroi receipt for payment of octroi duty on transportation of goods from Nadiad to Ahmedabad. During the material period, Octroi was leviable on go....
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....e arguments advanced by both the sides and perusal of the case records, I find that the issue involved in the present appeals is whether appellant are eligible to Cenvat credit on the basis of invoices of dealers which are claimed to have been received along with inputs. I find that officers visited the appellant's factory on the basis of information that the appellant availed the Cenvat credit on invoices, without actual receipt of the goods. However revenue did not find any shortage/excess of inputs or finished goods in factory of Appellant. Officers also seized records/ documents related to the receipt of the goods and availment of cenvat credit. The Revenue could not bring any evidence from the Appellant's factory by which it can be sho....
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.... by the appellant. In the absence of any evidence to the contrary, I find that the denial of Cenvat credit on the basis of the investigations conducted at the third party end cannot be adopted as the sole basis for denial of credit. 4.1 I also find that in Cenvat Credit Rules 2004 some minimum precaution was prescribed to ascertain the bona fide on the part of consignor of input i.e. under Rule 4 and Rule 9 of Cenvat Credit Rules 2004. I note in the above rules, it is provided that credit can be taken on the basis of invoices after the inputs covered by such invoice is received. It is important that goods covered by the invoices are received by the manufacturer in their factory. In the facts of the present caseI find that the appellant hav....