2014 (2) TMI 964 - AT - Central Excise

Disallowance of CENVAT Credit - Non production of ST-XXVI-A forms during the course of investigation - Certain quantity and value of goods did not reach factory of respondent for which Cenvat credit was to be disallowed - Held that - Nothing has come out from the adjudication order that the extent of goods which entered the State of Himachal Pradesh has gone elsewhere without reaching to the factory of the respondent. In absence of cogent evidence by Revenue to prove the diversion of goods after that reached the State of Himachal Pradesh, the order of learned Adjudicating Authority granting relief to the extent of Rs. 21,35,577/- cannot be disbelieved - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT NEW DELHI upheld the decision of the Adjudicating Authority regarding Cenvat credit. The Revenue's appeal was dismissed as there was no evidence of goods diversion after entering Himachal Pradesh. The respondent was allowed Cenvat credit of Rs. 21,35,577 based on relevant invoices and Form XXVI-A.