Order date – 20 June 2022

Facts :

• The Appellants, M/s Santram Metals & Alloys Pvt Ltd., is engaged in the manufacture of Copper Wire Bars, Copper Ingots and wire rods etc and they were availing of the benefit of Cenvat credit facility. 
•  Based on the investigation it was alleged that there was no movement of copper ingots; that only invoices were received on which the appellant had availed the Cenvat Credit without having received the goods further not unitizing the said cenvatable inputs towards manufacture of dutiable finished goods.
• Accordingly, Show Cause Notice was issued which was culminated in the adjudication order whereby the demand of Cenvat credit along with interest and penalty was confirmed and a penalty under Rule 26 of Central Excise Rules, 2002 was also imposed on the Co-Noticees.
• Aggrieved the appellants filed an appeal.

Issue :

Whether the appellant is eligible to Cenvat credit on the basis of documents which are claimed to have been received along with inputs invoices issued by the units?

Order :

• The Tribunal relying on the case of Lloyds Metal Engg. Co. v. CCE, Tribunal - Mumbai wherein it was held that burden to prove non-receipt of the inputs is required to be discharged by Revenue by sufficient evidence.
• In the present case the revenue nowhere produced any evidence either from the factory of supplier or appellant’s factory by which it can be proved that alleged goods were not received by the Appellant.
• Thus, it was held that the contention of the department that appellant have availed Cenvat credit without receipt of goods (raw material) is not tenable.
• According the order was set aside and the appeal was allowed.