2007 (8) TMI 301

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....or the Respondent. [Order].- After hearing both the sides, I find that the dispute in the present appeal relates to deemed credit on stock of fabrics held by the appellant as on 31-3-2003, which was available in terms of the provisions of Rule 9A inserted in Modvat Credit Rules. Appellant initially filed a declaration on 1-4-2003 declaring the goods lying in the factory as on 31-3-2003. However....

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....it was incumbent upon the department to get it verified physically the stock of inputs on that particular date to find out the exact stock of input & finished goods as on 1-4-2003, instead of denying the credit on the technical-cum-procedural ground that the assessee had themselves declared the stock in first place and therefore, the same cannot be rectified or revised by them subsequently. Beside....

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....the original as well as the appellate authority. 3. I find that Commissioner (Appeals) while rejecting the appeal has observed that - "Since appellant could not produce the additional proof of having subsequently declared stock of bleached fabrics in the factory as on 31-3- 2003, before the lower adjudicating authority as well as this appellate authority, I find that the adjudicating authority ....

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.... was taken on record on 7-4-2003. The challans produced by the notice proves beyond doubt that their supplier of material were in possession of the stock and the said stock was handed over to the notice on the 31-3-2003." 5. As is clear, the observation made by the Commissioner (Appeals) is against the factual position of record. There is no dispute that the appellant was in possession of the s....