2011 (4) TMI 149 - AT - Central Excise

Cenvat credit - loss of original copies -The assessees have raised the plea before the Tribunal that they were not in a position to submit the original as they had been lost/misplaced by the job worker. However, this plea was not raised before the lower appellate authority in the appeal against the order of the adjudicating authority who had denied credit also on the ground of non-availability of evidence of receipt of inputs and use thereof in the factory for manufacture of final products - The appeal is thus allowed by remand for fesh decision

Summary

Issues: Disallowance of credit based on photostat copies of invoice, imposition of penalty, absence of corroborative evidence for receipt and utilization of goods, scope of show-cause notice, sufficiency of photostat copies for availing credit, remand for fresh decision.

The judgment addresses the disallowance of credit amounting to Rs. 2,80,160/- to the assessees, who are manufacturers of electrical transformers, due to the use of photostat copies of invoices, deemed invalid as duty paying documents for credit availment. Additionally, a penalty of Rs. 30,000/- was imposed. The show-cause notice highlighted the denial of credit based on the inadequacy of photostat copies as valid duty paying documents, and the adjudicating authority further disallowed credit due to the lack of corroborative evidence regarding the receipt and utilization of goods, specifically copper wire rods. The lower appellate authority, deviating from the show-cause notice's scope, also considered the absence of evidence for the use of inputs in the factory for manufacturing final products. The central issue revolved around the acceptability of photostat copies, attested by the assessees, for credit availing purposes. The assessees argued before the Tribunal that the originals were lost or misplaced by the job worker, a defense not raised before the lower appellate authority. Consequently, the judgment sets aside the impugned order and remands the case to the adjudicating authority for a fresh decision, considering the material presented by the assessees regarding the loss of the originals in transit. The adjudicating authority is directed to provide a reasonable opportunity for the assessees to present their defense before issuing fresh orders, thereby allowing the appeal by remand.