DASHMESH CASTINGS PVT. LTD. Vs. COMMR. OF C. EX. & S.T.
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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ASHOK JINDAL, J. -
(2.)AFTER hearing the learned DR appearing for the respondent, I find that the appellant is engaged in the manufacture of alloys and non -alloys steel ingots. They procured their raw material from manufacturer M/s. Aggarwal Steel Rolling Mills & Metal Industries (hereinafter referred to as M/s. ASRM). The raw material so purchased by the appellant was defective CTD rounds/bars which acted as a waste material for the appellant, to be melted in their furnace. The goods were duly covered with the invoices issued by the manufacturer M/s. ASRM was duly covered by the invoice. There is no dispute about the said facts. However, Revenue conducted certain verifications at the end of M/s. ASRM and found that they have shown the high percentage of clearance of defective and rejected bars/rounds/waste/scrap. In the ER 1 return, they were reflecting 98 % of their production as prime quality CTD bars and rounds whereas in the commercial sale invoice, the said goods were being cleared as defective.
Revenue entertained a belief that the transaction between M/s. ASRM and the registered dealer and further dealers and the appellants were covered only by the cenvatable invoices, without actually supply of the goods and M/s. ASRM had diverted best goods in the open market and also has procured the raw material from an alternative source. Accordingly, proceedings were initiated against the present appellant for denial of Cenvat credit of Rs. 58,615/ - availed by them, by way of issuance of show cause notice. The said proceedings resulted in passing of an order by the original adjudicating authority and upheld by Commissioner (Appeals).
(3.)APPELLANT 's contention is that entire case of the Revenue is based upon assumptions and presumptions. They have admittedly purchased the goods from registered dealer, who in turn procured the same from manufacturer. If the manufacturer is showing the higher percentage of the rejected goods, the problem lies at his end and the appellant cannot be denied the credit. He also assails demand on the point of time -bar.
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