2015 (10) TMI 1823 - AT - Central Excise

Denial of CENVAT Credit - Invalid documents - Held that - When the Tribunal categorically directed the Commissioner (Appeals) to verify the fact of taking credit on the basis of valid documents, then it is the duty of the Commissioner (Appeals) to verify the documents himself and he should not proceed on the basis of findings of the Adjudicating authority and upheld the Adjudication order dt.17.02.1999. - Commissioner (Appeals) to verify the fact of taking credit on the basis of valid documents as directed by the Tribunal in earlier order dt.21.09.2005. He would also consider the submissions of the appellant, in respect of imposition of penalty. The Commissioner (Appeals) is directed to decide the appeal as expeditiously as possible. - Matter remanded back - Decided in favour of assessee.

Summary

Issues: Denial of CENVAT Credit and Penalty

Denial of CENVAT Credit:
The appellant filed an appeal challenging the denial of CENVAT Credit of Rs. 9,20,688.00 along with penalty. The Tribunal had previously remanded the matter to the Commissioner (Appeals) to verify the credit based on valid documents. However, the Commissioner (Appeals) did not verify the documents and upheld the Adjudication Order. The appellant's representative argued that they should be given another opportunity to present the documents for verification. On the other hand, the Revenue's representative contended that the appellant did not provide valid documents, and the Commissioner (Appeals) rightfully rejected the appeal. The Tribunal, after hearing both sides, disagreed with the Revenue's representative, stating that the Commissioner (Appeals) should have verified the documents as directed and not solely relied on the Adjudication order. Consequently, the Tribunal directed the Commissioner (Appeals) to re-verify the credit based on valid documents and consider the appellant's submissions regarding the penalty. The appeal was allowed for remand.

Penalty Imposition:
The Tribunal directed the Commissioner (Appeals) to consider the appellant's submissions regarding the imposition of the penalty along with re-verifying the CENVAT Credit based on valid documents. The Commissioner (Appeals) was instructed to decide the appeal promptly. The decision to remand the case was made to ensure a thorough verification process and fair consideration of the appellant's submissions.