SILENCE AUTO Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) BOTH the appeals are being disposed of by a common order as they arise out of the same impugned order passed by the authorities below vide which denial of Cenvat credit of Rs. 7,42,649/ - stands confirmed against the manufacturer M/s. Silence Auto Ltd. along with imposition of penalties upon both the appellants. The case has a chequered history. M/s. Silence Auto Ltd. are engaged in the manufacture of motor vehicle parts and accessories including silencers (hereinafter referred to as OE parts). The said OE parts manufactured by them are being supplied to various motor vehicle manufacturers like Punjab Tractors Ltd., Eicher Tractors Ltd., HMT, etc.

(2.) DURING the period in question i.e. from January, 1995 to December, 1998 the appellant was procuring the raw material from the registered dealer and was availing the benefit of the Cenvat credit of duty paid on the same. The said inputs were being utilised by him in the manufacture of final product and the credit availed was being used for discharge of duty liability on their final product.

(3.) THE appellant's factory was visited by the officer on 1 -11 -1999 and in the presence of Shri Subhash Sikka, Managing partner of the unit, various checks and verifications were undertaken. In his statement dated 1 -11 -1999, Shri Sub -hash Sikka deposed that they were purchasing the raw materials from local market/traders and the manufacturing process of silencers was sheering and cutting of sheets and pipes, bending to pipe, sheet, rolling and pressing, sheet press work, assembly with welding, oil burning, derusting in acid tank, enamelling, turning of casting and drilling, roll threading, plating, hardening and assembly of all different items of silencers for despatching after packing. The records maintained by the appellant revealed that the Cenvatable invoices mentioned the description of the goods as sheets/GP sheets.