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TMI Blog2014 (3) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... ved but sent the non-duty paid scrap under the cover of invoices. Held that:- Prima facie, I do not see any reason as to why HR sheets, coils, wires etc., should go for melting in such large quantities. No convincing explanation has been forthcoming from the appellant for such strange practice. If such goods are scrap the normal course of events is that the manufacturer of the goods himself re-melts the goods rather than selling it to a dealer who sells it to some other manufacturer for melting. In such circumstances, there is a strong prima facie case that what was used was non-duty paid scrap and the invoices on which credit was taken related to prime materials which were sold to others. Therefore, I consider it proper to call for a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... users who could not avail of CENVAT credit. Based on such facts, a Show Cause Notice was issued for to the four applicants mentioned above and a fifth applicant Shri K.G. Ramesh, who was the Managing Partner of the first appellant. 4. The counsel for the applicants submit that they have obtained the goods under cover of proper documents showing payment of excise duty and there is no dispute that they have received the raw material and the invoices. The department itself took two years of investigation to make out a case that the goods supplied were not related to the invoices supplied. Therefore, the allegation that the applicants did not take reasonable care about the bonafide duty nature of the goods while taking CENVAT credit is not s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fraud played on Revenue with the knowledge of the manufacturer and the appeal should be admitted only against a pre-deposit. 7. I have heard the arguments from both sides and perused the records. Prima facie, I do not see any reason as to why HR sheets, coils, wires etc., should go for melting in such large quantities. No convincing explanation has been forthcoming from the appellant for such strange practice. If such goods are scrap the normal course of events is that the manufacturer of the goods himself re-melts the goods rather than selling it to a dealer who sells it to some other manufacturer for melting. In such circumstances, there is a strong prima facie case that what was used was non-duty paid scrap and the invoices on which cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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