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TMI Blog2013 (10) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... ng whether a particular item is input or not, whether credit is admissible or not, and same can be used or not is a part of assessment process. The adjudicating authority when accepted the reply to the show-cause notice by the assessee since he had no reason to disbelieve the assessee - What can be said is that at the time of issue of show-cause notice and subsequently at the time of adjudication, officers exercised their discretion and believed the assessee in what they have claimed - the Commissioner (A) has confirmed the demand only on the ground that such investigation/verification was not taken up by the lower authorities - This means that the Commissioner, without any basis but the disbelief on the assessee claim and on a totally n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as taken as credit. Since the scrap is not an input for manufacture of dish ends and not eligible for CENVAT credit a detailed study of the issue was taken up and the same revealed that the said invoice is issued by M/s. Bharat Heavy Electricals Ltd. (BHEL) in the name of the assessee vide invoice No.HY-SA-1-400032 dated 31.8.2010 where in the duty paid is on M.S. scrap and the said invoice reflects a note mentioning that amount adjusted during 8/2010 towards scrap generated at subcontractor s work. 3. On further enquiry, it was noticed that the assessee was a job worker to M/s. BHEL and had received an order to do the job work on the materials supplied by them. It was further observed that after completion of the said job work the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been used in the manufacture of dish ends. Further, he also observed according to Notification No.214/86-CE dated 23.5.1986 under which the materials were sent by BHEL, the material should have been returned to BEHL and therefore there is a violation of the condition of the Notification. On these grounds, the Commissioner (A) confirmed the demand for the CENVAT Credit of Rs.2,76,068/- availed by the assessee with interest thereon. However, no penalty has been imposed. 5. Heard both the sides in considerable detail. Since the issue was argued extensively and considered from all angles, I do not find it appropriate to postpone the final decision on appeal by granting stay. Hence the appeal itself is taken up for final decision. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only because he did not believe the assessee. The whole system of collection of indirect taxes is based on the trust placed on the assessee and the assessee has to do the self-assessment and considering whether a particular item is input or not, whether credit is admissible or not, and same can be used or not is a part of assessment process. That being the situation, if an assessee has assessed the goods in a particular manner and has explained the same, if that is not to be accepted by the Revenue, some investigation or verification was definitely required. If the same was not felt necessary at the time of issue of show-cause notice, at least at the time of adjudication process, the original adjudicating authority, when a claim was made a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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