2011 (7) TMI 606 - AT - Central Excise

Cenvat credit - Held that - The lower appellate authority has failed to appreciate the evidence on record as well as various statements recorded pointing to the fact that invoices have been issued irregularly allowing ineligible credit to be taken - order is set aside and the matter is remanded to the lower appellate authority.

Summary

Issues:
Appeal by Department against lower appellate authority's decision on irregular issuance of invoices and eligibility of credit.

Analysis:
The judgment by Dr. C. Satapathy of the Appellate Tribunal CESTAT, Delhi pertains to an appeal by the Department challenging the lower appellate authority's failure to properly consider evidence regarding irregular issuance of invoices and eligibility of credit. The Department argued that the lower authority overlooked crucial evidence and statements indicating irregular issuance of invoices, leading to the unauthorized claiming of credit. Dr. Satapathy noted that the Department's grounds had merit and were essential for a thorough examination of the case's facts and circumstances. He criticized the lower authority for seemingly treating the case as a criminal matter requiring exhaustive proof, emphasizing that in departmental adjudication, establishing a preponderance of probability is sufficient. Consequently, Dr. Satapathy concluded that the lower authority's decision should be set aside, and the case remanded for a fresh decision. The advocate for the respondents concurred with this decision. The judgment allowed the appeal by remanding the matter to the lower appellate authority for a fresh decision after providing both parties with a fair opportunity to present their arguments.