2017 (3) TMI 1547 - AT - Central Excise

CENVAT credit - fake invoices - natural justice - Held that - the appellant has asked to supply the relied upon documents and other documents to file reply to the show cause notice several times but the same has not been supplied to the appellant, there is in violation of principles of natural justice - the matter is remanded back to the adjudicating authority for fresh adjudication after supplying the documents as asked by the appellant - appeal allowed by way of remand.

Summary

Issues involved:
Violation of principles of natural justice in denying cenvat credit due to lack of documents.

Analysis:
The appellant appealed against an order confirming a demand due to receiving only invoices without the goods. The appellant argued that they were not provided with specific documents despite multiple requests, leading to a violation of natural justice. It was contended that two suppliers had been cleared of supplying goods, so cenvat credit should not be denied. The Tribunal acknowledged the appellant's requests for documents and ruled that the impugned order was unsustainable due to the lack of document supply. Consequently, the order was set aside, and the matter was remanded for fresh adjudication with the necessary document supply to ensure a fair process and a lawful decision.

The judgment highlighted the importance of adhering to natural justice principles in adjudicating matters involving cenvat credit denial. The Tribunal emphasized that the failure to provide requested documents to the appellant constituted a violation of natural justice. By remanding the case for fresh adjudication with the required document supply, the Tribunal aimed to uphold fairness and ensure that the appellant had the opportunity to respond adequately before a lawful decision was made. The ruling underscored the significance of procedural fairness and the right to be heard in matters affecting the denial of cenvat credit, emphasizing the need for a transparent and just process in such cases.