TaxTMI 
TaxTMI 
2008 (6) TMI 153
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....ppellant company has availed credit on the said Ketonic Resin without using the same and hence such credit needs to be reversed and he ordered accordingly. The appellants aggrieved by the order-in-original preferred an appeal to the Commissioner (Appeals), who vide his order dated 25-7-2007 held that "Ketonic Resin" can be used by the appellant in the factory for the manufacture of dispersion dyes. At the same time, he came to the conclusion that two consignments of "Ketonic Resin" on which the appellant had availed credit were not received by the appellant in the factory premises, hence the confirmation of the demand is liable to be upheld and the consequent penalties are also liable to be upheld. These appeals are against such order. 3. The Ld. Counsel appearing on behalf of the appellants submits that the findings of the Ld. Commissioner's are totally erroneous. It is his submission that the private stock cards i.e. Kardex of the input "Ketonic Resin" from the year 1-4-1999 till 2003-2004 clearly indicated the receipt and consumption of the said inputs. It is his submission that the entire findings of the Ld. Commissioner (Appeals) revolved only on the fact, that, in one or two....
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....he stores in charge of the appellant company is very clear and it shows that the appellant company has not received the 'Ketonic Resin' against invoice No. 3236 dated 16-1-2004. He would submit that similarly as regards receipts of various invoices, the vehicle number shown in the invoices were different from the vehicle numbers entered against the aforesaid invoices in the gate register. He would further submit that the affidavit of the supplier of the materials was subsequent to the investigation and can be considered only as an act of afterthought. 5. Considered the submissions made by both sides and perused the records. The findings of the Ld. Commissioner (Appeals) as regards the use of 'Ketonic Resin' in the appellant's factory for the manufacture of disperse dyes is not challenged by the Revenue and hence the said findings have attained finality. This would indicate that the appellants could use 'Ketonic Resin' in the manufacturing of dispersion dyes. 6. In respect of the second issue, i.e. that the appellant had availed credit on the 'Ketonic Resin consignments which were not received in the factory, the findings of the Ld. Commissioner (Appeals) are as under:- "In respe....
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....rs shown in the invoices of M/s. Arihant Chemicals were different from the vehicle numbers entered against the aforesaid in voices in the gate register. The affidavits of Shri Bhupendra Sakaria, Managing Director of M/s. Arihant Chemical evers that they had been selling Ketonic Resins to appellants during the period 1999-2000 to 2003-2004. The annex urn to the affidavit shows that Ketonic Resins were sold to appellants M/s. Rathi Dyechem inter-alia vide invoice Nos. 3162 dated 8-3-2002; 165 dated 18-4-2002; 436 dated 13-4-2002 and 1678 dated 29-8-2002. It does not say anything about the actual receipt of the material in the appellant's factory and does not offer any explanation as to why there was a change in the vehicle numbers. Similarly the affidavits of S/Shri C.H. More, A. C. Sugandhi and D P. Deshpande make only a general statement about use of Ketonic resins in the manufacture of dispersed dyes. No attempt is made to counter the specific discrepancies brought about in the show cause notices. Thus one of the grounds on which the credit was denied i.e. non-receipt of the inputs in the factory for manufacture of final product remains uncontroverted and accordingly the demand ....
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....n, M/s. Arihant Chemicals and Resins (I) Pvt. Ltd. is raising commercial invoice. All the time delivery was arranged by M/s. Arihant Chemicals and Resins (I) Pvt. Ltd. to the factory of M/s. Rathi Dye Chem. Pvt. Ltd. as the terms were free delivery to Roha factory. The supplied product is received by M/s. Rathi Dye Chem Pvt. Ltd. at their factory at Roha and M/s. Arihant Chemicals and Resins (I) Pvt. Ltd. received payment for the supplied made up to date. A statement showing details such as invoice number and date, Quantity supplied, Value, details of transport, amount received for supplies made, payment details, etc. I hereby state that M/s. Arihant Chemicals and Resins (I) Pvt. Ltd. had time to time supplied and delivered the product Ketonic Resin UK 100/UK 1000 to M/s. Rathi Dye Chem Pvt. Ltd. as per their requirements during the period 1999-00 to 2003-2004 and also received full payment against the invoices raised by M/s. Arihant Chemicals and resins (I) Pvt. Ltd. by cheque drawn on Mumbai". I notice from the details which are annexed to the affidavit that they are very specific. Invoice wise supplies effected, payments received from appellant company and the details are for....