9911796707
TMI Blog2018 (12) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax, Meerut-II 2. Brief facts of the case are that the appellants were manufacturers of Menthol and Pepper Mint Oil. The appellants were issued with a show cause notice dated 14.01.2010 through which there was a proposal to recover Cenvat Credit amounting to Rs. 32,51,336/- availed by the appellant on inputs namely Menthol Flakes and DMO received from M/s G. Tech Industries, M/s Abhay Chemicals and M/s S.B. Aromatics, all located in the State of Jammu & Kashmir which were availing benefit of refund of Central Excise Duty as admissible under Notification Nos.56/2002 and 27/2002 both dated 14.11.2002. As per the said notifications manufacturing units in Jammu & Kashmir were eligible for refund of duty paid through PLA and the units ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2005 are attached as Annexure 17. (f) that It would be noticed from Para 5 of the letter dated 21.05.2010 of Commissioner, Jammu that his office has specifically pointed in reference to inquiry conducted in respect of all the Jammu based manufacturers by the officers of the Commissionerate Jammu. Most of the consignments of raw material were found entered in toll barrier. Officers of DIC who have assessed and fixed capacity of manufacturing have been regularly verifying their purchase consignments and the Central Excise Range staff had also been visiting these units for PBC checks/verification of plant/machineries and reported nothing adverse against these units. The letter has concluded in Para 6 that therefore it may not be strongl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered the rival contentions and on perusal of the facts on record, we find that the basic allegations in the Show Cause Notice was that M/s Arora Aromatics did not receive inputs on which they availed Cenvat Credit basically on the contention of Revenue that M/s Ruchi Infotech System, Jammu and did not have facility to manufacture the inputs received by M/s Arora Aromatics and that the goods did not move from Jammu & Kashmir to the appellant's factory and therefore, Cenvat credit was not admissible. The evidence submitted by the appellant in the form of Order-in-Original passed by Commissioner of Central Excise, Jammu on 31.03.2008, wherein it was held that M/s Infotech System, Jammu was manufacturing the goods was not accepted by the Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellant it was the duty of the Original Authority to accept them and not to discard by saying that the Officers have not seen the goods being manufactured by their own eyes. Further, the receipt of inputs was verified by the Officers of Central Excise Department and sample of the same were also drawn and forwarded for Chemical Examination. Such evidence was also not accepted by the Original Authority. Therefore, it appears that the Original Authority was pre-determined to adjudicate that matter in the manner in which he has decided the issue and he was not just and fair and did not discharged his duty as an independent adjudicator. We, therefore, set aside both the impugned Order-in-Original dated 29.01.2010 & 29.03.2011 and allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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