By TIOL News Service

MUMBAI, JULY 10, 2016: THE appellant had taken Cenvat Credit on HR/CR sheets whereas invoices showed description as HR/CR Coils.

Revenue alleged that goods received by the appellant were different from that appearing in the dealer's invoice.

SCN came to be issued for denying MODVAT credit of Rs.30,84,991/-.

The adjudicating authority disallowed credit amounting to Rs.8,13,332/- and allowed the remaining amount.

Both, the assessee and the Revenue filed appeals before the Tribunal.

The matter was remanded by the Bench with a direction to the appellant to produce co-relation between quantity of HR/CR coils and HR/CR sheets.

Observing that the appellant had not properly complied with the direction of the Tribunal, in remand proceedings, the entire demand was confirmed by the adjudicating authority.

The appellant is again before the Tribunal and submits that they had produced the co-relation between HR/CR sheets (cut from the HR/CR coils) received and quantity of said inputs used in the manufacture of components and which clearly showed that goods covered by the dealer invoices have been indeed received by the appellant, therefore, credit was ought to have been allowed.

The AR reiterated the findings in the impugned order.

The Bench observed -

"6. I find that there is no dispute that the appellant have received HR/CR sheets whereas dealer invoices under which the said goods was received showing description as HR/CR coils. Due to this difference in description in the dealer's invoices and actual material received, Tribunal in the earlier remand order referring to the Tribunal decision in the case of Dhimant Trading Co, (supra) remanded the matter to the adjudicating authority with direction if the appellant could produce correlation between HR/CR coils received by the dealer and HR/CR sheets supplied by the dealer are tallied Cenvat credit can be allowed. However from the records, it appears that appellant have not submitted correlation between HR/CR coils and HR/CR cut sheet received by them whereas they submitted correlation between HR/CR sheets and components made there from which is not relevant. This clearly shows that direction given by the Tribunal has not been properly complied with by the appellant. I, therefore, of the view that one more opportunity can be given to the appellant to satisfy to the Adjudicating authority about correlation. I therefore set aside the impugned order and remand the matter to the Original Adjudicating authority. The appellant is directed to produce correlation between HR/CR coils received by the dealer and HR/CR sheets supplied to the appellant after cutting of the coils. The adjudicating authority after satisfying the correlation submitted by the appellant, shall pass denovo adjudication order. If correlation is established, Cenvat credit can be allowed…."

The Appeal was allowed by way of remand.

(See 2016-TIOL-1691-CESTAT-MUM)