Decided on February 19,2015



Rakesh Kumar, Member (T) - (1.)THE facts leading to filing of this appeal by the Revenue are in brief as under.
(2.)THE respondents are manufacture of PVC and HDPE pipes in their factory located at Parwanoo. The period of dispute in this appeal is from 1998 -1999 to 2000 -2001. During this period they were receiving raw material through M/s. Karan & Co., Parwanoo, a consignment agent of M/s. IPCL. All the consignments of plastic materials have been received from M/s. IPCL which at that time was a Central Government Public Sector Undertaking. The appellant took Cenvat Credit of Rs. 85,84,952/ - on the basis of the supplier's invoices. When any supplier of goods from outside the state of Himachal Pradesh supplies any goods to some person in that state, the supplier is required to submit a form ST -XXXVI -A at the barrier, a copy of which is also required to be kept by the person receiving the consignment. The person receiving the consignment is also required to maintain a register containing details of the consignment received in the form ST -XXXVI. The officers of DGCEI conducted enquiry in respect of the consignments received by the respondent and found that the consignment of plastic renewals received from M/s. IPCL in ST -XXVI -A form were not figuring in any statutory records maintained by the respondent as the respondent were not maintaining any record except for a private register containing details of the consignments. It is on this basis that the department issued the show cause notice to the respondent for recovery of allegedly wrongly taken Cenvat Credit of Rs. 85,84,952/ - along with interest and also imposition of penalty on them under provisions of Central Excise Rules 1944. The show cause notice was adjudicated by the Commissioner vide order dated 05.5.2004 by which the proceedings initiated by the Show Cause Notice dated 09.07.2003 were dropped, on the ground that details of all the consignments received by the respondent from M/s. IPCL during the period of dispute under ST -XXVI -A Forms were found entered in the register maintained by them. Against this order of the Commissioner the Revenue has filed this appeal.
Earlier when this matter has been heard by the Tribunal on 12.05.2010 the Tribunal had allowed the revenues appeal, through it was the ex party order as on that date, none representing the respondent had appeared.

(3.)THE respondent filed an appeal before Hon'ble High court of Himachal Pradesh and Hon'ble High Court vide the order dated 30.10.2014 has remanded the matter back to the Tribunal for fresh decision after hearing the respondent.

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.