2024 (1) TMI 673
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.... has taken Cenvat credit. 2. The facts of the case are that the appellant is manufacturer of Cast Steel GM Balls and Forged Steel GM Balls. During the course of manufacture, the appellant procured inputs and taking Cenvat credit thereon and clearing the goods on payment of duty. An Audit was conducted for the period January 2015 to June 2017 in October 2019 and it was found that appellant has taken Cenvat credit on strength of the invoices issued by first stage dealer - M/s Tirupati Associates/second stage dealer - M/s A.K. Sons/M/s Tirupati Associates. On the basis of this audit, an investigation was conducted at the end of the manufacturer of the goods, which were found non-existent during the course of investigation and it was alleged t....
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....st stage dealer/second stage dealer to their premises and no investigation was done with the transporter/first stage dealer/second stage dealer. Without any investigation, the Cenvat credit cannot be denied. It is only a presumption by the Revenue that as manufacturer has not paid duty since January 2013 and during the course of investigation, it was found non-existent, therefore, it is a paper transaction only, but Revenue has failed to establish that the appellant has not received goods against the invoices, in question. The Revenue has also failed to show how the appellant procured the inputs to manufacture final goods, which has been cleared on payment of duty. In that circumstances, the Cenvat credit cannot be denied to the appellant. ....