2009 (2) TMI 608 - AT - Central Excise

Demand and penalty - Cenvat/Modvat - denial on the ground that, no goods were received by the appellants and that M/s. Agarwal Plastic (India), who was the manufacturer of the PVC compound, was non-existent from January, 2002 onwards and, therefore, could not have supplied any PVC compound to M/s. Satvik Industries and M/s. Asha Chemicals

Summary

The Appellate Tribunal CESTAT, New Delhi, in the case of Ms. Jyoti Balasundaram, J., Citation: 2009 (2) TMI 608 - CESTAT, New Delhi, represented by Shri B.L. Narsimhan, Advocate for the Appellant, and Shri Sansar Chand, DR for the Respondent, addressed the disallowance of Cenvat Credit of Rs. 3,26,400/- availed on invoices for the supply of PVC compound. The Tribunal noted that the Department's case was based on statements from M/s. Satvik Industries and M/s. Asha Chemicals claiming no supply of PVC compound to the appellants. However, the appellants provided documentary evidence including stock ledgers, registers, and issue slips, demonstrating receipt and use of the goods in their factory. The Tribunal found the evidence conclusive and allowed the appeals, setting aside the duty demand and penalties imposed on the company and its Senior Executive. The judgement was dictated and pronounced on the 3rd day of February, 2009.