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TMI Blog2017 (3) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... thority, therefore, it cannot be held that these chemicals are not inputs for manufacturing of their final products. Therefore on this ground, the cenvat credit cannot be denied. The investigation for transportation of goods has been conducted in respect to the only one transporter M/s ABG Carrier in 2007 whereas, the goods have been transported during the period 2002-2003 to 2003-2004. It is only presumption that the goods have not transported by transporter. In fact, the invoices have mentioned the lorry numbers and no investigation has been conducted with the owner's of lorry or drivers of the said lorry. There are three others transporters, who have transported the goods, these transporters were not examined, therefore, in the absenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s namely (i) Sodium Saccharine, (ii) Acrylamide (iii) Titanium Dioxide, (iv) N. Butanol and (v) Dicyandiamide are not inputs for manufacturing (Rosin and Terpentine) based products. 4. The statement of Sh. C.R. Pal, Production Manager, was recorded who has also stated that the said inputs were never used by them for manufacturing of the Rosins and Synthetic Rosin Sections but these inputs can be used in the manufacture of catalyst and the assessee never manufacture catalyst. It was also found that the material Sodium Saccharine and Acrylamide have been transported from Mumbai to Jammu through ABG Carrier, GT Road, Ambala. On verification, it was found that the transporter is bogus. The President of the Goods Transport Association stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icals namely (i) Sodium Saccharine, (ii) Acrylamide and (iii) Titanium Dioxide, (iv) N. Butanol and (v) Dicyandiamide were sought to be denied on the following allegations. A. Transporter i.e. M/s ABG Carrier does not exist, therefore, the said inputs were not received in the factory. B. The said imported chemicals are not inputs for manufacturing of final goods. C. No lorry receipts were produced, therefore, the said chemicals were not received in the assesse's factory. 4. It is his submissions that the chemicals in question have been used by the assessee in disproportionate resins/camphor. The said usage and manufacturing of camphor has declared by the assessee to the department that they are manufacturing camphor an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt of the inputs which the Revenue has failed to do so. He further submitted that the Revenue has relied on the statement of Sh. D.K. Raj, in fact he joined the company in 2005 and period in dispute is 2002-2003 to 2003-2004. Therefore, his statement cannot be relied upon. Moreover, from Sh. C.R. Pal was never questioned that whether these inputs are being used by the assessee for the process of manufacturing disproportionate resin. In fact, it was asked from Sh. C.R. Pal that whether these inputs are inputs for resins and synthetic resins or not? Therefore, the statement of Sh. C.R. Paul has not relevance. The statement of Sh. Ravi Gupta who was incharge of production was not recorded. In these terms, the impugned order qua denial of cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionate resin as water treatment agent based on the detail process given by National Chemical Laboratory, Pune. Titanium Dioxide Used in the manufacture of Camphor as a catalyst (usage of describe by United States Patent Office in granting patent on the process for making camphene, an intermediate in manufacture of camphor) Dicyanamide Used in the manufacture of basic ingredient of Amino Plastic and resin and used as water treatment chemical (extract from the site https://the chemco.com/chemical/dicyanamide) N. Butanol Is an alcohol and a known solvent used for natural and synthetic resins and camphor (extract i.e. Technical Leaflet from BASF PETRONAS Chemicals). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is non-existent. As the Revenue has failed to come with any positive evidence to show that in the absence of the inputs how the final product was manufactured in their factory, therefore, the allegation in the show cause notice against the assessee is not sustainable. 10. In that circumstances, the demands confirmed against the assessee are set aside. Consequently, no penalty is imposable on the assessee. 11. In view of these observations, I hold that as under: i. The appeal filed by the Revenue is dismissed. ii. The appeal filed by the assessee is allowed with consequential relief. The appeals are disposed off in the above terms. ( Dictated and Pronounced in the open court ) - - TaxTMI - TMITax - Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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