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TMI Blog2016 (10) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... inners to various buyers were found. As such, it can not be concluded with certainty that no manufacture of thinner has happened in the appellant's factory. To establish that cenvat credit has been taken without the receipt of inputs, Revenue is required to produce positive evidence to the effect. 90% of the inputs are said to have been supplied by M/s. Jagriti Plastics. There is nothing on record to show that investigations having been undertaken against M/s. Jagriti Plastics for supply of material and other suppliers. The financial transactions involved in purchasing inputs from M/s. Jagriti Plastics as well as other suppliers have not been looked into. The most pertinent point to investigate would have been to probe cash flow back from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Appeal No. 1836-1837 of 2008 - Final Order No. 52423-52424 /2016 - Dated:- 23-6-2016 - Hon'ble Ms. Archana Wadhwa, Member (Judicial) And Hon'ble Mr. V Padmanabhan, Member (Technical) Shri G R Singh, DR for the Appellants Ms Seema Jain, Advocate for the Respondent ORDER Per V Padmanabhan: Two appeals filed by the Revenue against the assessee M/s. Union Metal and Shri Sunil Kumar Marwah, partner are against the order dated 14.5.08 passed by the Commissioner (Appeals), New Delhi in which he has set aside the order passed by the original authority dated 21.1.08. 2. The assessee is registered for the manufacture of thinners and phosphate Chemicals falling under heading 38.14 of the Central Excise Tariff. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. 3. Finally, he concluded that the department failed to establish that the assessee has wrongly availed the cenvat credit without physically receiving the inputs. 4. The Revenue has challenged this order of Commissioner (Appeals) mainly on the following points: (i) The statement of Shri Sunil Kumar Marwah dated 23.3.06 to the effect that they had never purchased inputs nor undertaken any manufacturing activity is corroborated by the fact that no machinery for manufacture was found in the premises. Further no evidence of manufacture on job work basis has also been brought on record. (ii) Evidence unearthed in the investigation into the procurement of goods with the owners of some of the vehicle numbers given in the documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as being undertaken in the factory. From the process of manufacture it is easy to see that the item thinner can easily be made by mixing of various solvents, requiring even no electricity connection. As such, it can not be concluded with certainty that no manufacture of thinner has happened in the appellant s factory. To establish that cenvat credit has been taken without the receipt of inputs, Revenue is required to produce positive evidence to the effect. 90% of the inputs are said to have been supplied by M/s. Jagriti Plastics. There is nothing on record to show that investigations having been undertaken against M/s. Jagriti Plastics for supply of material and other suppliers. The financial transactions involved in purchasing inputs from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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