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TMI Blog2023 (12) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... at HR Coils can be used as inputs in the manufacture of ingots/ billets in an induction furnace. The Revenue s allegation that the appellant did not have equipment to cut the coils and manufactured formers for captive consumption is not based on any evidence like Panchnama. The appellant s claim that they have borrowed the equipment from other manufacturers cannot be ignored. Obtaining only the invoices from his suppliers, without receiving the material - HELD THAT:- Revenue has not undertaken any investigation into the aspect of actual transportation and the receipt of the material; no statement of transporter/ driver was recorded; no enquiries with the banks was made to ascertain whether the transactions were genuine and are not ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants on the ground that they are not inputs but were final products in themselves; allegations were also levelled that the appellants have procured only Cenvatable invoices from their suppliers, like M/s Kailash Steel and Alloys without commensurate movement of goods; the allegations levelled were confirmed vide the above cited impugned order. 3. Shri Sudhir Malhotra, learned Counsel for appellant No.1, submits that they have totally procured 83418.504MT of raw material during the impugned period whereas the disputed raw material was only 1671.365MT; the appellants manufactured 11019.060MT of wire rod, 32.860MT of castings and 16111.825MT of ingots/ billets during the impugned period and have paid duty of Rs.12.55 crores. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visited the factory of the appellant on 28.09.2010, the factory was found working; there was no variation in stock of inputs; Shri Vijay Abrol, the Managing Director of the appellant, stated that the impugned material was used for blending with other scraps; proof of purchase in receipt of material was available in the form of freight payment and weighment slips which were not appreciated by the Adjudicating Authority. Learned Counsel further submits that CR Coils purchased were used in the manufacture of formers , i.e. hollow cylindrical profiles placed in the crucible of the induction furnace; CBEC vide Circular No.690/6/2003-CX dated 21.02.2003 accepts that the former is actually consumed and is contained in the ingots and billets man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their buyers and payments were received through banking channels; therefore, penalty cannot be imposed on them as there is no violation. He also submits that the appellant No.2 not being a physical person who can be alleged to have dealt in the goods, penalty cannot be imposed. 8. Shri Pawan Kumar, assisted by Shri Aneesh Dewan, learned Authorised Representative for the Department, reiterates the findings of the impugned order. 9. Heard both sides and perused the records of the case. It is the case of the Department that the appellants have availed credit on items which cannot be considered as inputs as they are final products themselves; the price of the inputs being more than that of the final products, economic logic defies the use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBEC vide Circular No.690/6/2003-CX dated 21.02.2003, clarified that the former is actually consumed and is contained in the ingots and billets manufactured in the units, it is in the nature of inputs. Therefore, we find that learned Commissioner failed to appreciate that HR Coils can be used as inputs in the manufacture of ingots/ billets in an induction furnace. The Revenue s allegation that the appellant did not have equipment to cut the coils and manufactured formers for captive consumption is not based on any evidence like Panchnama. The appellant s claim that they have borrowed the equipment from other manufacturers cannot be ignored. 12. Another allegation of the Department is that the appellant No.1 did not receive the mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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