Arch Pharmalabs Ltd, Benzo Petro International Ltd, Manoj Tejraj Jain Versus CCT, Medchal – GST
Central Excise
2018 (12) TMI 429 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 6-12-2018
E/30708/2018, E/30709/2018, E/30710/2018 – A/31497-31499/2018
Central Excise
Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL)
Shri Prasannan S. Namboodiri, Advocate for the Appellant.
Shri V.R. Pavan Kumar, Superintendent/AR for the Respondent.
ORDER
Per: M.V. Ravindran
1. These three appeals are directed against Orders-in-Appeal No. HYDEXCUS- MD-AP2-268-270-17-18 dated 28.02.2018.
2. Relevant facts that arise, in brief are the main appellant Arch Pharma is a manufacturer of fine chemicals, availing CENVAT credit of duty paid on inputs, utilizing the same for discharge of duty liability on finished goods cleared. During the course of investigation of manufacturing unit M/s Benzo, officers of DCGEI noticed that Benzo manufacturing unit had put up a dealer and had passed on i
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e adjudicating authority that they have received the material, manufactured the finished goods and removed the same on payment of duty which could not have been possible if the materials were not received. On limitation, was the case that they have informed the department about the receipt of the material, recorded the same and made payments to the dealer who had supplied the material. The adjudicating authority after following due process of law, confirmed the demands raised along with interest, imposed penalties on the individual and the dealer. Appeals preferred before the first appellate authority resulted in upholding of the Order-in-Original. Hence, these appeals.
3. Learned counsel appearing for all the three appellant after giving overall picture of the issue involved draws my attention to the facts of the case and more specifically the documents. It is his submission that the entire case of the revenue is dependent on the statements given by the individuals of the appellants
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of the main appellant) wherein they have admitted that they have not received the material.
5. On careful consideration of the submission made by both sides, on merits, I find that the dealer had issued invoices on 1st May, 2013 and the said invoices are seen by me. In the said invoices the dealer has specifically mentioned the transporter as Padmashri Road Lines and vehicle registration number is also mentioned along with LR/ Consignment note No.70262 dated 01.05.2013. The said invoices are annexed at Page 95 & 96 of appeal memoranda. I perused the consignment note (truck copy) of the said LR annexed at Page 110 of the appeal memoranda. The said annexure does indicate the consignment note as number being 70262 dated 01.05.2013 and also indicates truck numbers which has been mentioned on the documents. It is seen further from the documents available on record that the appellant had shown the receipt of this material in the stock records maintained by them as inputs and the said materi
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alleged that this consignment note is a fake. In the absence of anything to discredit consignment note of Padmashri Road Lines which carried the material from Vadodara to Hyderabad, it is difficult to accept the revenue's view point that the main appellant had availed CENVAT credit only on documents.
7. I find that my this view is fortified by the decision of the Tribunal in the case of Dhakad Metal Corporation [2015 (330) ELT 561]. This view is also further fortified by the judgment of the Tribunal in the case of GS Alloy Castings Ltd [2016 (331) ELT 310] wherein similar issue cropped up. I find that the Tribunal in the case of Chaudhary Steel Traders [2015 (329) ELT 934] on a similar issue has held that in the absence of any investigation made at the end of transporter, as to the transportation of the goods being incorrect, demands are not sustainable.
8. In view of the facts and circumstances in the case in hand, I find that the ratio of the above decisions would cover the issue i
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