2022 (6) TMI 41 - AT - Central Excise

Input Tax Credit - non-production of original documents by the appellant - Department observed that they have passed on wrong credit to the customers on various counts including the unspecified documents, without having proper documents and the excess credit/ double incidence of duty has been passed on - HELD THAT - In view of the perusal of the documents as are already on record including Departments' own verification report is also on record. It is held that there are sufficient documents/evidence on record. Thus the findings in the impugned order, that no documents are produced by appellants are hereby held wrong. However, it is still to be appreciated and re considered as to whether those documents and even the verification report pertains to the same invoices which are the subject matter of the Show Cause Notice, as has been mentioned by ld. D.R. It is also to be reconsidered as to whether the documents on record including the invoices are with respect to the amounts mentioned in the Show Cause Notice and whether those documents are sufficient. to falsify the allegations in the Show Cause Notice. This re assessment and re-consideration is only possible at the end of the adjudicating authority below itself. Matter accordingly is remanded to Commissioner (Appeals) to reconsider the entire matter in the light of the documents produced by the appellant - appeal stands allowed by way of remand.

Summary

Issues:
- Confirmation of proposed demand due to non-production of original documents by the appellant.
- Allegations of passing wrong credit to customers based on invalid duty paying documents.
- Rejection of appeal against the Order-in-Original confirming the demand and penalty.
- Argument by the appellant regarding the submission of all requisite documents during the investigation.
- Commissioner (Appeals) not considering the documents provided by the appellant.
- Verification report confirming no fault on the part of the appellant.
- Request for re-calculation and re-consideration based on the documents provided.
- Commissioner (Appeals) confirming the demands solely due to non-production of original documents.
- Remand of the matter to Commissioner (Appeals) for reconsideration based on the documents produced by the appellant.

Analysis:
The appeal was filed to challenge the confirmation of the proposed demand against the appellant due to the non-production of original documents. The Department observed that the appellant had passed wrong credit to customers based on invalid duty paying documents, leading to the proposed disallowance and recovery of specific amounts along with penalties. The Order-in-Original confirmed a demand of Rs.1,54,639/- with a penalty of the same amount. The appellant argued that all requisite documents were provided to the Department during the initial investigation stage, emphasizing that the duty liability was properly discharged, and no wrongful passing of duty incidence occurred. The appellant highlighted the verification report by the Superintendent, Central Excise, confirming no apparent fault. The appellant requested the order to be set aside based on the documents provided, which were not considered by the Commissioner (Appeals).

The Department contended that the documents provided by the appellant did not relate to the impugned allegations, but expressed willingness for re-examination and reassessment of liability. The Commissioner (Appeals) confirmed the demands primarily due to the appellant's failure to produce original documents, despite assurances. After hearing both parties and reviewing the record, it was noted that the Commissioner (Appeals) had meticulously addressed the proposed demands but confirmed them based on the non-production of original documents. The Tribunal found that there were sufficient documents and evidence on record, contrary to the findings in the impugned order. However, the matter was remanded to the Commissioner (Appeals) for reconsideration in light of the documents provided by the appellant, with liberty granted to submit additional documents if necessary. The Commissioner (Appeals) was directed to decide the matter within four months based on the documents presented. Consequently, the appeal was allowed by way of remand for further review and consideration.