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TMI Blog2016 (12) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... p and admission of duty. I find that without any evidence, the demand of duty on scrap cannot be sustained - Appeal partly allowed. - APPEAL No.E/220/11 - Order No.A/87552/16/SMB - Dated:- 11-5-2016 - Mr. Raju, Member (Technical) Shri. MH Sukheja, Advocate for appellant Shri. RK Maji, Asst. Comm. (AR) for respondent Per: Raju 1. The appellant, M/s. Indus Engineering Co. availed credit of certain inputs and capital goods. They also sent certain material for job work. The demand of Cenvat credit availed was confirmed by the lower authorities. Similarly, a demand for recovery of Central Excise duty on waste and scrap allegedly generated at job workers premises and not returned to appellant was also raised. A demand was also raised for capital goods credit taken on a piece of machinery which was not found in the premises of the appellant on the day of the visit of officers. 2. The appellants are engaged in the manufacture of pressure vessels, condensers dish ends, etc., and also engaged in the fabrication at site. The officers of preventive visited the factory of the appellants on the information that the appellants are availing Modvat credit on inputs which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elivered at M/s.Indus Engineering Co. Tarapore. 3.1 The learned Counsel argued that in the show-cause notice it has been alleged that the material ie., MS/CS Saw Pipes were cleared from M/s.Man Industries (I) Ltd. and directly supplied to their site at Vishakhapatnam. It was argued that the said pipes were indeed supplied directly from the factory of suppliers to their site at Vishakhapatnam. However, it was argued that the said credit has already been reversed vide three invoices by which the goods were cleared from their factory. It was argued that apart from technical issue of raising an invoice of a different value and different description there has been no offence. He highlighted that the credit taken on these invoices was reversed by three invoices by which they had sent 30 pieces of columns, which were nothing else but pipes to their sites at Vishakhapatanam. 3.2 It was argued that the capital goods credit of ₹ 7,953/- was taken in respect of welding machine model Master 500 imported vide bill of entry No.A5347 dated 30/08/1994. He argued that on the date of visit the said machine could not be located in the factory. However, he submitted a certificate of Chart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were cleared by the three invoices in which the appellant had claimed to have reversed the credit and then why do the invoice shown the vehicle Number. He asserted that it is only a after thought and an attempt to match invoices on some genuine clearances against the demand of duty for reversal. 4.3 As regards the demand of duty of ₹ 7,953/- on the capital goods not found in the appellants premises. He pointed out that the certificate of Chartered Accountant is not based on the visit to the factory. He pointed out at the material time, the said capital goods were not available in the factory. The said goods were not found in the factory as per the statement of the partner of the company given on the day of visit of officers. 4.4 As regards the demand of duty on credit allegedly generated at job workers premises and not returned to the appellants, it was argued that in any process of processing of scraps would be generated and since the appellant had not quantified the same demands was made on the basis of statements of Managing Partner of the company. He pointed out that in the earlier stage of adjudication, the appellants had themselves given a fresh calculation of dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Nos) Duty (Rs.) Job No. 1 147/ 16.10.97 Fabrication and supply of parts of Horton spheres column 7208.11 12 198000 1286 2 148 / 16.10.97 -do- 7208.11 12 198000 1286 3 151 / 16.10.97 -do- 7208.11 6 99000 1286 Total 30 495000 I find that the description, job number, value as well as sub-heading number are different in the invoices received from M/s. Man Industries and the invoices made by the appellants. I find that the heading 7208.11 reads as follows:- 72.08 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated - Plates and universal plates: 7208.11 Exceeding 5 mm in thickness ..... X X X X Extracts X X X X X X X X Extracts X X X X
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