TaxTMI 
TaxTMI 
2023 (7) TMI 765
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....n CEA No. 5 of 2022). However, for facility of reference, the facts are being taken from CEA No. 4 of 2022. 2. Briefly narrated, the relevant facts of the case are that the assessee Company namely, M/s Avon Meters Private Limited is engaged in the manufacture of Energy Meters. It has been availing CENVAT Credit in terms of provisions of CENVAT Credit Rules, 2004 (for short "Rules, 2004"). On 11.02.2015, on the basis of an information received qua large scale evasion of Central Excise Duty by the assessee, its premises were searched by a preventive team of Central Excise Department. Physical verification of stock of inputs as well as finished goods was conducted. During the search proceedings, it was found that stock of BOPET film (poly film) was short to the extent of 6949.900 kgs and it was showing balance of 6971.900 kgs. The search team also recovered 25 invoices most of which were shown to be issued on the same date i.e. 31.01.2015. Several other irregularities were found by the search team during the course of search which revealed that the assessee Company was engaged in paper transaction without actual receipts on goods qua which cenvat credit had been claimed by it. Stat....
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....n to be purchased by it. Fraudulent paper transactions were proved to have been made. The revenue had not only relied upon the statements of the officials of the assessee but also suppliers, buyers and transporters which proved that the respondent-assesse had been indulged in bogus transactions and had been availing cenvat credit on goods which were not actually purchased. The learned Tribunal committed a grave error by holding that the statements of different persons could not be taken into consideration as the revenue had not allowed the assessee Company to cross-examine them. He further argued that the allegations as levelled against the assessee were found to be correct not only on the basis of the statements of its Directors, suppliers and buyers etc. but also on the basis of other material available on record but this fact had been wrongly ignored by the Tribunal. He further argued that the adjudicating authority had based its findings supported by credible and corroborative evidence collected not only from the buyers, transporters and suppliers but also upon the test report of samples drawn from the buyers which proved that only polycarbonate was being used by the assessee f....
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....ranules of polymers of ethylene (PE), granules of polymers of propylene (PP) or granules of polymers of styrene (PS). He further argued that the goods qua which cenvat credit had been claimed by the respondent-assessee were proved to have been passed through Information Collection Centres (for short "ICC") of the State of Punjab at different points of time but this fact had been ignored by the adjudicating authority. It was further argued that the revenue had failed to produce any material on record to show that the goods qua which the cenvat credit had been claimed, were diverted to any third party or that the amount of money shown in the invoices through which they had been purchased was returned to the respondent. It was further argued that this Court even otherwise could not reappreciate the evidence and conclude that the findings of fact as recorded by Tribunal were incorrect. Hence, it was argued that the appeal was devoid of any merits and was liable to be dismissed. To fortify his arguments, learned counsel for the respondent has placed reliance upon authorities cited as Commissioner, Central Excise, Ludhiana v. M/s Pee Jay International Limited Village Jaspalon, Ludhiana, ....
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....irectly to the job worker on the direction of the manufacturer. 9. The claim of the respondent assessee is that it had been purchasing inputs which are different forms of plastic granules for the purpose of manufacturing of energy meters and its allied products and had actually purchased and used these inptus whereas according to the appellant from the statements given by the suppliers of these inputs, it stood proved that no such inputs had infact been purchased by the respondent assessee and only paper transactions had been done. Further as per the appellant, the final product i.e. energy meters, the samples of which were sent for testing were proved to have been manufactured by use of polycarbonate only and not by use of other inputs i.e. plastic granules etc. qua which credit had been claimed. The revenue had also raised a contention that even the statements of transporters of the assessee confirmed that no such inputs were sent to the respondent on their transport vehicles and received by it. The Tribunal had observed that since the persons whose statements had been recorded during the course of search and investigation and had been relied upon by the appellant, were not al....
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....s used for manufacturing of the energy meters, the samples of which were sent to him for the purpose of testing. The adjudicating authority had observed that it was revealed from the report of the CIPET Chennai that the samples of energy meters were manufactured with polycarbonate only. It is relevant to mention here that the report of the Manager (Testing) as such has not been produced on record but it is revealed from the order passed by the adjudicating authority that the expert had opined that the mixing of polycarbonate with non polar plastic granules like granules of polymers of ethylene (PE), granules of polymers of propylene (PP) or granules of polymers of styrene (PS) was difficult. The Tribunal had observed that this report could not be considered to be conclusive on the point that the body part of energy meter could not be manufactured by mixing polycarbonate with plastic granules of the type which were of the inputs in dispute in this case. The Tribunal had relied upon the admission made in the opinion so given by Dr. K. Prakalathan to the effect that polycarbonate could be mixed with granules of polymers of ethylene (PE), granules of polymers of propylene (PP) or granu....