Cenvat Credit Demand Quashed Due to Lack of Evidence of Non-Receipt of Goods

Balaji Pressure Vessels Ltd Vs Commissioner of Central Tax (CESTAT Hyderabad) The CESTAT Hyderabad examined an appeal challenging an order confirming demand and imposing penalty under Section 11AC of the Central Excise Act, 1944 on allegations of wrongful availment of Cenvat credit. The department alleged that the appellant had availed credit on inputs without actually receiving the goods in its factory, in violation of Rule 3 of the Cenvat Credit Rules, 2004. The appellant, engaged in manufacturing empty gas cylinders, had procured HR coils from suppliers and, except for a small quantity, cle...