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TMI Blog2019 (11) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... as the 'Act'). 2. During the assessment year in question, the assessee was engaged in manufacture of products of iron and steel namely structurals. For conducting that activity, it imported raw materials including sponge iron. Amongst others, it imported quantities of sponge iron against invoice no. 687 and 688, both dated 21.12.2008, issued by M/s. Om Agencies, Surat at Gujarat. These quantities were being imported by truck bearing registration number UP15AT-0733, when the same were detained for checking and seized for violation of Section 54(1) (14) of the Act. As to the documents accompanying the goods, the revenue does not dispute that the goods were accompanied with the regular excise invoice issued by the seller containing de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rate of 10.30 percent amounting to Rs. 20,630.85 against invoice no. 687. Similarly, duty had been paid against the other invoice. Again, it is undisputed that the assessee was a manufacturer of excisable goods for which the goods forming subject matter of penalty proceedings were raw material. Therefore, it cannot be disputed that the assessee would have been entitled to avail CENVAT with respect to the duty paid on such raw material. 6. Again, one cannot lose sight of the fact that according to the assessee, the commodity in question was iron and steel and, the end product manufactured by the assessee was iron and steel structural. Unndisputedly, iron and steel structurals fall under Section 14(iv)(v) of the Central Sales Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was engaged in manufacture of goods wherein the goods being imported were to be used as raw material, the Tribunal ought to have given more meaningful consideration to this material and its consequences, before dismissing the appeal filed by the assessee. 11. Intention to evade tax is a state of mind. Direct evidence for such fact is rarely available. Therefore, all the more, before reaching a positive conclusion as to existence of mens rea or guilty intention of mind, the Tribunal must carefully weigh all material available on record and examine their consequence in light of the law laid down by this Court and in the context of the fact allegations made by the revenue. 12. Accordingly, the order of the Tribunal dated 12.02.2013 is s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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