9911796707
TMI Blog2010 (7) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... rds of the appellants for the period from October, 2006 to September, 2007, it was revealed to the department that the appellants had availed cenvat credit of service tax without complying with the requirement of statutory provisions and therefore a show cause notice dated 21-4-2008 came to be issued requiring the appellants to show cause as to why cenvat credit amounting to Rs. 5,61,27,973/- should not be held to have been wrongly availed and therefore should not be demanded under Rule 14 of Cenvat Credit Rules, 2004 read with Section 73 of Finance Act, 1994 and Section 11A of Central Excise Act, 1944 along with interest and penalty. The notice was contested by the appellants on various grounds. However, by the impugned order, the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Division, Meerut and provisions of law, the issues raised under the SCN are taken for decision as under :" 5. Further in para 4.5 of the impugned order, it has been recorded that the authority has verified the said reports to ascertain liability of the appellants. The impugned order and the records placed before us nowhere disclose that the appellants were furnished with the copies of the said reports. The rules of principles of natural justice require that before any document is relied upon to ascertain the liability of the assessee, the copy thereof should be made available to the assessee except in case where there are statutory prohibition for providing such copies or some other justifiable reason. Neither the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gives discretion to the adjudication authority to ascertain whether tax due on inputs and input service has actually been paid and such input or input service has actually be used or is to be used in the manufacture of final products or in providing output service as the case may be, and if satisfied in this regard, to give necessary concession to the assessee in relation to any procedural irregularity in relation to maintenance of documents on the basis of which cenvat credit can be availed. Obviously before ascertaining the liability of the assessee under Cenvat Credit Rules, the adjudicating authority is expected to apply its mind to this aspect of the matter and thereafter to arrive at the final conclusion about liability of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed was substantial. Pursuant to such directions, you visited our office on 5th &6th Feb 2009and verified all the original invoices. The acknowledgement dated 6th Feb 2009 which is enclosed herewith for your ready reference in which it is clearly mentioned that all the points as mentioned in the aforesaid notice has been satisfactorily verified from original invoices. The verification of ST-2 certificates of parties was pending which were submitted by us on18th Feb 2009. Copy of acknowledgement letter dated18th Feb 2009is enclosed. We are surprised and shocked by your letter asking us to submit the original copies of invoice when the same have already been verified at the time of your visit to our office on 5th &6th Feb 2009. Despite these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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