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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 ..... tion was conducted and it was found that the assessee is availing cenvat credit on certain imported chemicals, which were actually not being received by them in their factory during the period 2002-03 to 2003-04. Therefore, on 17.07.2007, the factory premises of the assessee was searched and documents were resumed. It was found that the assessee imported the following chemicals: i. Sodium Saccharine ii. Titanium Dioxide iii. Acrylamide iv. Isopropyl alcohol v. Monosodium glumate vi. Alpha pinene vii. N. Butanol viii. Terpene oil ix. Rosin x. Gum rosin xi. Dicyndiamide 3. The statement of Sh. D.K. Raj, Deputy General Manager (production) was recorded on 17.07.2007. He stated that the chemicals namely (i) Sodium Sacchar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with interest and to impose penalty. The matter was adjudicated. The adjudicating authority confirmed the demand of Rs. 47,77,690/- alongwith interest and imposed equivalent amount of penalty on the assessee and dropped the demand of Rs. 35,88,623/- on the premise that as the Revenue has not produce any evidence on record for non transportation of the said goods. Aggrieved from the said order, both sides are in appeal. 3. The ld. Counsel for the appellant submits that initially inquiry was made with regard to Sodium Saccharine, Titanium Dioxide, Acrylamide, Isopropyl alcohol, Monosodium glumate, Alpha pinene, N. Butanol, Terpene oil, Rosin, Gum rosin, Dicyndiamide chemiclas and credit on 5 chemicals namely (i) Sodium Saccharine, (ii) Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The adjudicating authority allowed cenvat credit on inputs except the goods transported by the ABG Carrier on the premise that the said transporters does not exist. In fact, for remaining other six chemicals which were initially investigated, which were also transported by ABG Carrier, the cenvat credit with regard to those inputs have not been disputed therefore, merely on the premise that in 2007, the ABG Carrier has found non-existent the cenvat credit cannot be denied. Moreover, there is no evidence on record produced by the Revenue that the lorry number entered in the invoices were these only of M/s ABG Carrier. Moreover, no investigation was conducted on those lorry and non receipt of the inputs which the Revenue has failed to do so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y were not transported to their factory. I find that the appellant has filed regular declaration/undertaking with regard to usage of these inputs and manufacturing of their final product as back as 1995-96 to the inputs in question has been used by the assessee in manufacturing of disproportionate resins/camphor and usage has been explained as under: Inputs Usage of Disproportionate Resin/Camphor Sodium Saccharin Used in the manufacture of Disproportionate resin as water treatment (washing agent) based on the detail process given by National Chemical laboratory, Pune. Acrylamide Used in the manufacture of Disproportionate resin as water treatment agent based on the detail process given by National Chemical Laboratory, Pune. Ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three others transporters, who have transported the goods, these transporters were not examined, therefore, in the absence of any positive evidence that cenvat credit cannot be denied to the asssessee. Further, I find that initially, the investigation was started for denial of credit on 11 chemicals but the show cause notice was issued for denial of 5 chemicals only. For remaining 6 chemicals for which cenvat credit is not disputed, 3 chemicals were transported by M/s ABG Carrier, therefore, the cenvat credit cannot be denial on the ground that the transporter 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, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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