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TMI Blog2008 (7) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... 09,35,008/- against the respondent? (b) Whether in the facts and circumstances of the case, the Tribunal was justified in setting aside the interest and penalties imposed on the respondent? " In Tax Appeal No. 1726 of 2007, the following question has been proposed by appellant-revenue. "Whether in the facts and circumstances of the case, the Tribunal was justified in setting aside the interest and penalties imposed on the respondent" In Tax Appeal No. 1728 of 2007, the following question has been proposed by appellant-revenue. "Whether in the facts and circumstances of the case, the Tribunal was justified in setting aside the interest and penalties imposed on the respondent?" In Tax Appeal No. 1729 of 2007, the following question has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent-unit had merely obtained invoices from the dealers showing receipt of duty paid inputs without actually receiving the said goods; the payment towards such invoices, though shown to have been made by cheques, appear to have flown back to the owner of respondent-unit; the transporter had stated that the goods in question had been delivered outside octroi limits, and the statements of the employees as well as Directors of the registered dealers supported the case of revenue that in fact no goods had been received by the respondent-unit. One more factor which was considered was non-availability of storage capacity by the respondent-unit. Accordingly, the adjudicating authority confirmed demand to the tune of Rs. 1,09,35,008/- along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord to arrive at a correct conclusion. 5. The evidence on record shows that against confessions made by Shri Nareshbhai, Hiteshbhai and heshbhai, the facts on record establish that payments towards the inputs have been made by cheques in respect of inputs covered by invoices. 6. The invoices under which the inputs have been received are supported by octroi receipts. 7. The octroi receipts constitute an important and independent documentary evidence supporting the fact that inputs covered by the invoices drawn in name of the assessee, were in fact carried in tankers, brought within municipal limits where the factory of the assessee is situated. 8. he drivers of the tankers have not been examined to establish that the goods were not rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product was also stated since inception in the declarations made and the returns filed by the assessee. 19. Monthly returns filed under Rule 7 of the Cenvat Credit Rules, 2001, which are on record, established use of these inputs in the final products manufactured by the assessee. 20. As regards storage capacity in the factory, it was found that there were two tanks of 15 metric tonnes capacity, 35 Mild Steel Drums of 250 kg and 45 Carboys of 60 kg capacity. 21. Revenue has failed to co-relate the requirement of inputs vis-a-vis final product manufactured at a given point of time because adequacy of storage capacity can be judged with reference to quantity of inputs received at a particular point of time and not with reference to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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