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2024 (6) TMI 762 - AT - Central ExciseIssues involved: Denial of Cenvat credit based on non-receipt of inputs and reliance on statements without cross-examination. Issue 1: Denial of Cenvat credit based on non-receipt of inputs The appellant's Cenvat credit was denied on the grounds that they had not received the inputs and had taken credit only based on the invoice. The denial was due to the Manufacturer M/s. Suraj not supplying the goods to M/s Neo, thus making it impossible for M/s Neo to supply the goods to the appellant. This formed the basis for denying the Cenvat credit. Issue 2: Reliance on statements without cross-examination The appellant argued that the case against them was primarily based on statements from directors and chairmen of relevant companies, as well as transporters. The appellant requested cross-examination of these individuals, citing the need for natural justice as mandated under Section 9D of the Central Excise Act, 1944. The Adjudicating Authority's rejection of cross-examination was deemed a violation of natural justice. Additionally, the demand for the period in question was considered prima facie barred by limitation, as part of it was beyond 5 years. In a previous case involving M/s Gujarat Intrux Limited, a similar situation arose where Cenvat credit was taken without receipt of goods. The Tribunal remanded the matter for want of cross-examination of key individuals, emphasizing the importance of allowing cross-examination as per the Central Excise Act, 1944. The current case was found to have relied on similar evidence without proper cross-examination, leading to the decision to set aside the impugned orders and remand the matter for fresh adjudication. The appellant was directed to be given sufficient opportunity during the de novo adjudication process.
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