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TMI Blog2017 (10) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... s, in terms of Rule 9(2) of CCR, 2004 were entered and manufacturer buyers have paid duty on such goods. In these circumstances, Cenvat credit cannot be denied. Moreover, no such allegation against the appellant that they have received inputs from illicit means under the cover of invoices and no investigation was conducted at the end of manufacturer-buyers to allege that there was shortage of inputs. In these circumstances, CENVAT credit to the manufacturer-buyers cannot be denied. Penalties - Held that: - Merely on the basis of the check point barrier report it has been alleged that the goods have not been received by M/s. Karan & Company. As no full-proof investigation has been conducted by the Revenue in the matter, the allegation is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notices were issued to the appellants which were adjudicated by the adjudicating authority, who after verifying the form ST 26A, allowed the Cenvat credit to the appellants and dropped the proceedings. On appeal, ld. Commissioner (Appeals) held that in some cases, verification could not be done in the form ST 26A. Therefore, he confirmed the demand by denying the Cenvat credit along with interest and imposed penalty on all the appellants. Aggrieved from the said orders, the appellants are before me. 3. Ld. Counsel for the appellant submits that appellants namely, M/s. Swati Storewell and M/s. Chemiplast Industries are the manufacturers-buyers of the HDPE Granules which has been received by them on payment of duty, against the cenvatabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e properly. As per the verification report, for the amount on which Cenvat credit has been denied by ld. Commissioner (Appeals), the goods have never entered in the State of Himachal Pradesh. Therefore, the Commissioner (Appeals) has rightly denied the Cenvat credit and consequently imposed the penalties. 5. Heard the parties, considered the submission. In this case, the sole allegation against the appellants is that, on the basis of records of sales tax department on their barrier, Cenvat credit denied on the premise that goods were not entered in the State of Himachal Pradesh as no entry is found at the barrier for entrance of the goods. Revenue did not do any investigation with the transporters of the goods. Moreover, the manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under:- 4. After appreciating the submissions of the both sides, we find that identical cases were made out by the Revenue against a number of units located in Himachal Pradesh. In some cases, the additional form ST XXVI-A issued by Sales Tax department could be produced by the assessees and in some other cases the same could not be produced. The matter travelled upto Tribunal and it was held that denial of credit on the basis of ST XXVI-A form issued by Sales Tax Department cannot be on the sole ground of non-production of such forms. Reference in this regard can be made to Tribunal's decision in the case of Commissioner of Central Excise, Chandigarh v. Hitkari Industries Limited reported as [2008 (226) E.L.T. 583 (Tri.-Del.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, the appellants could produce some of the ST XXVI-A form, which according to the sales tax department were not available. This fact itself prove the falsity of information retrieved from the sales tax department. In view of the foregoing discussion, we set aside the impugned order confirming demands against the appellants and imposition of penalties upon them and allow all the four appeals with consequential relief. 5. As regards the Revenue's appeal, we find that Commissioner has extended the benefit to the assessee on the basis of ST XXVI-A form produced by them during the course of adjudication. Revenue's contention is that same do not belong to the virgin raw materials inasmuch as, as per the statement of one Shri Rajen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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