2018 (5) TMI 655 - AT - Central Excise

CENVAT credit - Pig Moulds and C.I. Castings - appellant had availed CENVAT credit on these items without receipt of the same - Held that - the Adjudicating Authority given the findings that assesses have not produced any valid evidence to prove that the subject goods were manufactured by their suppliers, supplied, transported and received in their factory of production - the appellant has not effectively controverted the said findings in the grounds of appeal and has argued the matter more on limitation - appeal dismissed - decided against appellant.

Summary

Issues: Availment of CENVAT credit on Pig Moulds and C.I. Castings without actual receipt of goods.

Analysis:
1. The appeal challenged Order-in-Original No. 46/2010 regarding the availment of CENVAT credit during March 2005 to March 2006 on Pig Moulds and C.I. Castings.
2. The Revenue contended that the appellant availed CENVAT credit without receiving the goods, as confirmed by the Central Excise Department.
3. The Adjudicating Authority found that the goods for which credit was taken were not manufactured by the suppliers, based on unchallenged material facts.
4. The appellant failed to provide valid evidence supporting the receipt of goods in their factory, despite the burden of proof lying on them as per Rule 9(6) of the CENVAT Credit Rules, 2004.
5. The Adjudicating Authority's detailed findings, both on merits and limitation, were considered acceptable, leading to the upholding of the impugned order.
6. The appeal was rejected, affirming the correctness and legality of the impugned order.

This judgment highlights the importance of substantiating CENVAT credit claims with valid evidence of goods receipt, placing the burden of proof on the claimant. The decision underscores the significance of factual findings by the Adjudicating Authority and the need for appellants to effectively challenge such findings to succeed in their appeals.