2023 (10) TMI 1158

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f Rs.11,21,079/-. After undertaking the investigation and enquires at the end of the supplier, the Department issued show-cause notice on the following grounds : (a) The appellant has not received 608 MT of scrap from the vendor. The invoices were issued only to facilitate for taking the cenvat credit, hence the same is in the nature of paper transaction. (b) The vendor did not have proper infrastructure for manufacturing and generating such scrap at his end. (c) The activity of cutting and generating scrap does not amount to manufacture 2. Based on these grounds, the appellant was issued show-cause notice for reversal of cenvat credit of Rs.11,21,079/-. After due process, the lower authorities confirmed the de....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fter thorough investigation was taken up at the end of the vendor, it was ascertained that the vendor has no facility to supply the huge quantity of 608 MT to the appellant. They have made enquiry with the Road Transport Officials, who have stated that the vehicles are not capable for transporting such consignments. Apart from this, he submits that the truck owners clearly state that they have not transported the scrap to the appellant. Therefore, he submits that the present appeal is required to be dismissed. 6. Heard both sides and considered the submissions. 7. In so far as the grounds taken by the Department that the activity undertaken by the vendor does not amount to manufacture, the same cannot be considered since such issue is....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....adjudicating authority and then only it should be admitted as an evidence. After this, an opportunity should be given to the noticee to cross-examine them. In this case, in spite of the appellant seeking cross examination of these persons, the adjudicating authority has failed to give them this opportunity. 9. While the Department relies on the Road Transport Authorities' statement about the vehicles not being capable of transporting the goods, these statements/letters have not been provided to the appellant. Hence, their veracity has not been checked nor could be countered by the appellant. 10. Non-issue of recorded statement of 8 transporters and 2 other officials, denial of cross-examination of these persons and nonproviding of the....