9911796707
TMI Blog2004 (11) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.Briefly the facts are that the appellant firm manufactures excisable goods falling under chapter heading 83 of the CETA. The Central Excise officers who visited the appellant's factory found that he was availing of Modvat credit on HR/CR coils (hereafter referred to as "coils"). However it was revealed that only HR/CR sheets were received by the appellants and not the coils covered under central excise invoices. Statements of various persons concerned were recorded. In the Show-Cause Notice it was alleged that the credit of duty paid on the coils was wrongly taken as such coils were never received in the factory. Only the sheets were. It is also alleged that the sheets received in the factory were not supported by central excise invoices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .680 metres of CRCA coils were sold to the appellant and the same were transported in a vehicle bearing "MCT 3781" whereas the capacity of the vehicle verified by the RTO is only 16 metres; that the appellants' contention that it was by mistake that only one vehicle number was shown but the goods were actually transported in three different vehicles in that transaction and payment towards transport charges was made by them is false; that partners' ignorance as to the identity of the job workers from whom the coils were being cut into sheets clearly shows that the coils shown in the Central Excise invoices were never converted into sheets; that the appellant paid Rupees 15 lakh towards Modvat credit wrongly taken suggests admission on their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion but to reflect the same description in his statutory accounts even though he got them cast into sheets. The Commissioner's contention that the entries in the cash book and the corresponding entries in the general ledger do not tally is incorrect. The department did not find the appellant taking more credit than the duty paid on the coils. In support of his contention that credit cannot be denied on the ground that what the assessee received are sheets and not coils as shown in the Central Excise invoices, he relied on the Tribunal's decision in the case of Dhimant Trading Company v. CCE, Mumbai-V [2003 (159) E.L.T. 421] where the Tribunal held that a broad correlation between sheets and coils with contemporaneous records is sufficient t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentical case and held that Modvat cannot be denied in such a case. It would have been a different matter altogether if the weight of the duty paid coils is different from the one shown in RG23A Part I. 8.The department attempted to show that the sheets as received in the factory did not emanate from the duty paid coils. The argument is that the appellant failed to provide LRs of vehicles in which sheets were transported from the slitters' premises to his own. The appellant in turn claims that the LRs are not issued in all cases and that in any case they have produced evidence to show that transport charges for such a movement were paid. Further it is contended that the appellant has not produced any evidence to show that octroi was paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants' ignorance about the slitters is an indication that the coils were never sent to the slitters. In the same breath, the Commissioner also says that the appellant produced slitters' bills. The department therefore is aware as to who these slitters are. The department did not choose to record the statements of these persons. In fact this would have been the best way to counter the appellants' contention that he got the coils cut into sheets. 11.The appellant's contention that some of the suppliers of the coils themselves undertook to have the coils cut into sheets and therefore described the goods both as coils and sheets is supported by the central excise invoices issued by the suppliers. We observe that the appellant could have receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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