Recovery of CENVAT based on third party statement without tangible corroborative evidence unsustainable

C.C.E. & S.T.-Bhavnagar Vs Arsh Alloys (CESTAT Ahmedabad) CESTAT Ahmedabad held that no reliance can be placed on statements of third party without tangible corroborative evidence. Accordingly, recovery of Cenvat Credit under rule 14 rightly dropped. Facts- The respondent-assessee is engaged in manufacture of excisable goods namely “M.S. ingots” in their Induction furnace unit. For the purposes of manufacture of the said goods, the Respondent mainly purchased duty paid inputs such as “waste and scrap of iron and steel”. The Respondent availed cenvat credit of duty paid on the input...