9911796707
TMI Blog2010 (1) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... ited the appellant s factory and found a quantity of 9,700 kg of Indigo Powder in stock, which was detained. A panchanama was also drawn on 8-1-2002, wherein certain discrepancies were noted. One of these discrepancies was in respect of the shipping marks shown in the invoice/packing list and those shown on the HDPE bag containing the goods. Another discrepancy was that a batch number was shown on the bag, whereas there was no batch number in the invoice/packing list. The name of the manufacturer/supplier was shown on the bag but not in the invoice/packing list. The panchanama also noted that the quality report produced by the authorized signatory of the company indicated the batch numbers of the goods to be 1-10-4112 to 4117. The batch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, therefore, the credit of Rs. 6,99,994/- on the input appeared to be availed of fraudulently. The show-cause notice proposed to appropriate the above PLA debit towards payment of duty of Rs. 6,99,994/- being the Cenvat Credit of CVD availed by the noticee. It also proposed a penalty on them under Rule 13(2) of the Cenvat Credit Rules, 2001 read with Section 11AC of the Central Excise Act. Interest on duty was also demanded under Rule 12 read with Section 11AB. These proposals were contested. In adjudication of the dispute, the original authority confirmed the above demand of duty and ordered appropriation of the debit in PLA towards such demand. It also imposed a penalty equal to duty on the assessee, apart from ordering recovery of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he discrepancies found by the department were cleared by them by producing documentary evidence correlating the Bill of Entry and the goods. According to the department, the discrepancies found between the goods and the import documents with regard to shipping marks, batch number and the identity of the supplier remained and, therefore, there is no effective rebuttal of the department s allegation that the goods found in stock in the appellant s factory on 8-1-2002 did not belong to the Bill of Entry. Both sides have extensively referred to the documents available on record in the context of dealing with the so-called discrepancies. However, the whole dispute is found to be narrowing down to the question whether the goods imported by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Bill of Entry and, therefore, Cenvat Credit of the CVD of Rs. 6,99,994/- appeared to have been fraudulently availed on the entire quantity of 14000 kg of Indigo Powder . It is not in dispute that the aforesaid quantity of 9700 kg of Indigo Powder formed a part of 14000 kgs of Indigo Powder covered by the Bill of Entry. The quantity of 4300 kg of Indigo Powder was apparently consumed by the appellant in the manufacture of their final product prior to 8-1-2002. The department has no case that the said quantity of 4300 kg of Indigo Powder was not so consumed. More significantly, it is not the case of the department that the said quantity of 4300 kg of Indigo Powder , which is undisputedly a part of the total quantity of Indigo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the Bill of Entry. The second condition is that the goods should be used as input in the manufacture of final product. The department has no case to the contra. Thus, both the conditions were satisfied by the assessee. If that be so, the benefit of Cenvat Credit of the CVD paid on the entire quantity (14000 kg) of Indigo Powder covered by the Bill of Entry is available to the appellant. 5. In the result, the denial of the above credit to the appellant is illegal and unjustifiable and consequently, appeal E/l264/07 is allowed. The appellant was not liable to debit the amount in their PLA. They chose to debit the amount at the instance of the department and, that too, under protest . This protest is justifiable in the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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