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TMI Blog2017 (11) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the appellant’s unit can be brushed aside by preferring a general opinion given based on a query by the Department. In our considered opinion, we find that the Original Authority has not given due regard to the expert’s study report of the very same authority conducted in the premises of the appellant. The reasons for the same has also not been recorded. Regarding the other evidences with reference to manufacturing process in M/s. Bhawani Moulders Pvt Ltd. and usage of the appellants own lorry for movement of the pig iron, we note that the defence of the appellant with supporting documents have not been duly analyzed for a proper finding by the Original Authority. Denial of credit amount of more than ₹ 5 crore, on the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al product during the material period. After obtaining the opinion from National Institute of Technology, Raipur regarding the standards of manufacture and based on certain verifications with the appellants, proceedings were initiated against the appellant to disallow the cenvat credit availed on such excess consumption accounted with reference to pig iron amounting to ₹ 5,53,55,948/-. The case was adjudicated and the Original Authority, who disallowed the credit, as mentioned above, and also imposed a penalty of equivalent amount in terms of Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11 AC of the Central Excise Act, 1944. 2. The findings of the Original Authority are strongly contested by the appellant in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir own lorry, it is submitted that they have all the supporting evidences to show that the expenditure incurred, including for fuel, for using the lorry. (e) The appellants maintained all the statutory record and there is no discrepancy either alleged or established in such records. (f) The variation in discharging central excise duty by cash in different years has been justified by the appellant relying on various factors. The purchase of inputs from dealers earlier and later from the manufacturer themselves has not been considered by the Original Authority. 4. Elaborating further on various grounds, the ld. Counsel submitted that the impugned order disallowing the legally available cenvat credit is without any basis and pray ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rameters like iron to coke ratio. The opinion by NIT referred to normal practice in Cupola Industry indicating the range of percentage or raw material and cast iron production. We note that the proceedings against the appellant were mostly based on this opinion dated 12.10.2009 provided by NIT. We also note that the very same authority, who gave the technical opinion of NIT conducted shop floor observation in the appellant s manufacturing unit on three different dates in May, June and July, 2010. Thereafter, NIT has provided an elaborate 11 pages report containing their opinion. It has been categorically stated that a material yield ranging from 84.50% to 86.50% when a carbon value of 3.4% to 4.2% in the cast iron ingot mould is satisfactor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efence of the appellant with supporting documents have not been duly analyzed for a proper finding by the Original Authority. In fact, regarding the maintenance, expenditure and usage of the own vehicle, ld. Counsel submitted substantial documentary evidence along with entries in their P L Account. These are not examined and commented upon by the Original Authority. 10. We also note that on the explanation furnished by the appellant regarding change in the practice of procuring pig iron from the dealers to the actual manufacturers, the Original Authority declined to entertain the same. The price difference and the proportionate reduction in the central excise percentage has not been duly examined. 11. On careful consideration of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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