COMMISSIONER OF CENTRAL EXCISE Vs. MAHAVIR METAL WORKS

JUDGEMENT

(1.) HEARD . The facts of this appeal lies in a narrow compass and as such, the stay application of the Revenue is allowed. In my view, the appeal itself can be disposed of as the learned Counsel for the respondents has put -up his appearance and he has no objection if the appeal itself is decided.

(2.) THE issue in this appeal relates to the availability of Modvat credit to the respondents on CR coils. The adjudicating authority disallowed Modvat credit of the disputed amount to the respondents and imposed penalty also on them as detailed in the order -in -original. But the Commissioner (Appeals) has reversed the said order and allowed the Modvat credit.

(3.) I have heard both the sides. The case of the Revenue is that in fact the respondents did not receive the CR coils as inputs and had even no machinery for converting the same into sheets and that their suppliers M/s. N.V. Enterprises issued them only modvatable invoices. However, the respondents had denied these allegations and maintained that they had the necessary machinery for converting CR coils into sheets and had actually used the CR coils as inputs for the manufacture of their final products. The adjudicating authority recorded detailed reasons while rejecting the stand of the respondents. However, the Commissioner (Appeals) has reversed that order simply by recording that "the respondents (appellants before him) contended that they had the machinery for converting CR coils into sheets and that they had received the inputs physically under the duty paid invoices from a registered dealer". But he has nowhere recorded his own findings for accepting these facts. He was required to verify from the facts material brought on record if the contention of the appellants before him (respondents in the present appeal) stood corroborated or not. He has also not touched the issue of limitation which had been discussed by the adjudicating authority. Therefore, the impugned order passed by the learned Commissioner (Appeals) is in fact no order in the eyes of law and as such the matter deserver to be sent back to him for fresh orders in accordance with law.