9911796707
TMI Blog2017 (11) TMI 1001X X X X Extracts X X X X X X X X Extracts X X X X ..... on payment of duty. Some of these circuit breakers are also cleared on payment of duty to the appellant s own unit at AEI Works (AEI in short) situated in Calcutta. Based on certain information, officers of Calcutta Central Excise Commissionerate conducted verification of accounts in the appellant s premises. On conclusion of verification, the Revenue entertained a view that the transport of duty paid Vacuum Circuit Breakers from SLW to AEI unit of the appellants are not duly accounted for and the credit availed by AEI unit on such items are not available due to various reasons. Proceedings were initiated against the appellants by issue of SCN dated 09.10.2007 by the Commissioner of Central Excise, Calcutta VI Commissionerate. The notice co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e denial of credit was ordered. b) The documentation of the receipt, manufacture and dispatch of all goods in both the units of the appellant are managed and monitored by the comprehensive accounting system based on SAP. The system requires coding of all the items and subsequent tracking based only on such coding. c) The duty paid invoices were also generated in the SAP system and in fact they bear only coding for description of the items. The coding system followed by SLW is intended for clearance of Vacuum Circuit Breakers from the said unit. When these goods become inputs at AEI unit for further manufacture of excisable goods, it is tagged and monitored by a code which will be relevant and usable at AEI unit. There is no substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbers and the accounts maintained by the appellant at AEI Works showing different code which resulted in the proceedings to deny the credit. b) The original authority examined the defense submissions and after due appreciation of all facts, arrived at his conclusion more specifically explained at para-15 of the impugned order. c) The Cenvat credit on inputs are allowed only when the duty paid inputs are duly received and accounted for by the manufacturer. In the present case, AEI who availed the credit should discharge their burden about correctness of the credit in terms of Rule 9 of CCR,04. Failure to discharge the burden will necessarily result in denial of credit. 5. We have heard both sides and perused the appeal records. 6.1 Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the explanations offered by the taxpayer in their defence do not hold water. The inputs transferred by SLW with that received by AEI Works are units and that the item code or the description mentioned in the CE invoice generated by AEI Works for taking on-line credit also did not tally with the description as mentioned in the duplicate copy of the invoice, which should be nothing but the hard copy of the invoice generated in the system. I thus find that the allegation that the inputs actually received do not match with the actual inputs sent by SLW has not been effectively clarified by the taxpayer. Therefore, I have no hesitation in concluding that the corrections in the item codes are carried out only to match the description as contain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis for denial of credits in these facts and circumstances. 6.3 Further, it is to be noted that the original authority has recorded that the inputs were received by AEI and it would appear that the said inputs are essential for the manufacture of further dutiable products at AEI Works. We find neither there is allegation regarding alternate sourcing of these inputs nor any evidence with reference to diversion of duty paid inputs by SLW to any other destination other than AEI with reference to theses impugned goods. There is no allegation or discussion in the proceedings before the original authority on these aspects. 7. In view of the above discussion and analysis, we find no merit in the impugned order. Accordingly, the same is set as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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