Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 1615 - AT - Central ExciseIssues involved: Denial of cenvat credit due to non-receipt of inputs from Manufacturer M/s Suraj, rejection of retraction by persons involved in the transaction, violation of principles of natural justice by not allowing cross-examination, demand beyond the limitation period. Denial of Cenvat Credit: The appellant's cenvat credit was denied on the basis that they had not received the inputs and had taken credit only on the invoice due to non-supply of goods by Manufacturer M/s Suraj to M/s Neo, thereby preventing the possibility of supplying goods to the appellant. This denial led to the issue at hand. Retraction Rejection and Cross-Examination: The appellant's counsel argued that the case against the appellant relied heavily on statements of directors, chairman of M/s Neo and M/s Suraj, and 3 transporters, whose retractions were not accepted by the Adjudicating Authority. The appellant requested cross-examination, which was denied by the Commissioner. The appellant contended that under Section 9D of the Central Excise Act, 1944, cross-examination should have been allowed to challenge the statements, which were the sole evidence in the case. Limitation Period and Violation of Natural Justice: The Adjudicating Authority's rejection of retractions without allowing cross-examination was deemed a violation of natural justice. Additionally, it was noted that the demand for the period July 2012 - Dec 2013, with the Show Cause Notice issued on 31.10.2017, included a part beyond the 5-year limitation, specifically July 2012 - October 2013, which was considered prima facie barred by limitation. Judgment: After considering the submissions and records, the Hon'ble Member (Judicial) set aside the impugned order and remanded the matter to the Adjudicating Authority for a fresh order. It was emphasized that the appellant should be afforded sufficient opportunity for the de novo adjudication process to ensure fairness and adherence to principles of natural justice.
|