9911796707
TMI Blog2016 (6) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... s for manufacture of bobbins. They have taken Cenvat credit on nylon granules and sent the same for job work to various job workers to make bobbins to be received by them for use in the further manufacture of SMPS Transformers etc. Certain verifications were made in August 2004 in the premises of the appellant. On enquiry the Department entertained a view that the nylon granules sent to job workers under the cover of private challans have not been duly received back as molding of bobbins and the appellant did not maintain proper records. Accordingly, proceedings were initiated against them which concluded in an order dated 31/8/2005 confirming a recovery of Cenvat credit of Rs. 3,96,270/- and imposing penalty of an equivalent amount on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the situation even in the third round of litigation. 2. The latest remand direction by the Tribunal is to the Original Authority for giving a clear finding as to whether - "(a) The appellant had maintained account for the receipt and utilization of the nylon granules in their RG-23, Part-I and Part-II account ; (b) Whether the Cenvat credit availed nylon granules had been sent to the job workers under job work challans ; and (c) Whether the nylon granules sent to the job workers had been received back by the appellant, even if, after 180 days". 3. The Tribunal observed that if the nylon granules had been received back the Cenvat credit has to be allowed. A perusal of the impugned orders by the lower Authorities cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details of bobbins and their further use in their manufacture. Originally, the recovery of Cenvat credit was mainly sought to be made on the ground of not following proper procedure for sending the goods for process by job workers. This issue has already been discussed and requires no further reiteration that there is no general rule about the point whether procedural lapse, if any, could contribute to denial of a substantial benefit. The matter has to be looked into on a case to case basis depending upon the available evidence to collaborate a factual assertion. In the present case when the matter was remanded for a third time adjudication, it is expected on the part of the Original Authority to conduct a cross verification of other materi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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