9911796707
TMI Blog2022 (4) TMI 730X X X X Extracts X X X X X X X X Extracts X X X X ..... justice, judicial discipline, is arbitrary, perverse and violative of Article 14 and 19(1)(g) of the Constitution and consequently direct the 2nd respondent to furnish copies of the invoices relied upon in the show cause notice. 2. The petitioner is engaged in the manufacture of Spheroid Graphite (SG) Iron Castings and Grey Iron Castings falling under Chapter 73 of the First Schedule to the Central Excise Tariff Act, 1985. According to the respondent, based on the intelligence gathered during the audit of the petitioner's accounts it was found that the assessee procured CRCA Scrap for use in the manufacture of final products, but invoices on which CENVAT Credit was taken mentioned other than CRCA Scrap, an investigation was initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue, appear to have been received only on paper. Even assuming that the assessee has specifically received those goods, the fact remains, according to the Revenue that, they were not inputs/raw materials for their finished goods and therefore negates their eligibility as input credit. 5. On this basis, the Revenue proceeded to conclude the proceedings and ultimately passed an order on 02.11.2021, whereby they confirmed the proposal for demand for recovery of CENVAT Credit of Rs. 1,00,16,369/- being ineligible CENVAT Credit during the period August 2012 to March 2016 in terms of Rule 14 of CENVAT Credit Rules, 2004 read with Section 11A(4) of the Central Excise Act, 1944. The Revenue also imposed a penalty of 100% ie., Rs. 1,00,16,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over to us. The same was also communicated to your Office. It is unfortunate that in-spite of repeated reminders asking for the copies of relied upon documents, seized by the Department, we are not able to furnish our reply in time, for the query raised in the SCN." 9. Learned counsel for the petitioner further contended that, in view of the said fact that, despite the asking of the petitioner for certain invoices during the year August 2012 to August 2013, which are going to be relied upon by the Revenue, and that was not supplied or copies of the same not given to the petitioner for verifying the same to put forth their case as defence to the show cause notice, the entire proceedings is vitiated. Therefore, on that ground, the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so had been given and those are the invoices claimed to have been given by the suppliers to the petitioner while supplying CRCA Scrap which was claimed to be an input for the purpose of claiming CENVAT Credit by the petitioner and if the petitioner wants to verify the same, they can verify the same with the copy of the invoices from their suppliers and moreover most of the documents required by the petitioner have been handed over to the petitioner assessee with their due acknowledgment on 03.02.2020. Therefore, the question of non-supply of documents in this case does not arise. 14. From the said assertion made by the Revenue, it could be concluded that, most of the documents have been given to the petitioner which has been acknowledged b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their finished goods negates their eligibility as input credit. In terms of Rule 3 of the Cenvat Credit Rules, 2004 credit is eligible only in respect of inputs used in or in relation to the manufacture of final products. The definition of inputs in terms of Rule 2k of the Cenvat Credit Rules, 2004 specifically mentions that input excludes any goods which have no relationship whatsoever with the manufacture of a final product. Therefore, I hold that the credit of Rs. 1,00,16,369/- taken by M/s.JKM Ferrotech Ltd in contravention of Rule 3 of the Cenvat Credit Rules is liable to be recovered in terms of Rule 14 of the Cenvat Credit Rules 2004 read with Section 11A(4) of the Central Excise Act, 1944." 18. Having gone through these documents, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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