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TMI Blog2016 (11) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... etailer can survive if more than 80% of its final product were held to be defective/rejected/scrap. As regards the present appellant, they have shown receipt and utilization of raw material in their factory and have taken the benefit of Cenvat credit based upon the cenvatable invoices issued by registered dealer. Statements of authorised representative of the appellant as also of the dealer are to the effect that inputs stand supplied to them under the cover of proper cenvatable invoices. Statements of representative of the M/s ASRM is to the effect that during the relevant period lot of their product came out to be defective and rejected and as such, same was sold after discharging the central excise duty leviable thereon. Admittedly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le invoice, the said goods were being cleared as defective. 3. Revenue entertained a belief that the transaction between M/s ASRM and the registered dealer and further dealers and the appellant were covered only by the cenvatable invoices, without actually supply of the goods and M/s ASRM had diverted best goods in the open market and also has procured the raw material from an alternative source. Accordingly proceedings were i ted against the present appellant for denial of Cenvat Credit availed by them, by way of issuance of show cause notice. The said proceedings resulted in passing of an order by the original adjudicating authority and upheld by Commissioner (Appeals). 4. Appellant contention is that entire case of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods. Inasmuch as no retailer can survive if more than 80% of its final product were held to be defective/rejected/scrap. 8. Apart from the fact that above findings of the authorities are admittedly based upon some circumstantial evidence and the financial calculations. I find that the Revenue has alleged M/s ASRM was selling its final product to other buyers in the domestic market. But there is virtually no evidence to that effect. Further, no proceedings stand initiated against M/s ASRM. As regards the present appellant, they have shown receipt and utilization of raw material in their factory and have taken the benefit of Cenvat credit based upon the cenvatable invoices issued by registered dealer. Statements of authorised repr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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