When Assumptions Replaces Evidence CESTAT reins in Denial of Cenvat Credit

In a decisive ruling, the CESTAT set aside a demand raised on the allegation that inputs were not received in the factory. 

The Tribunal found that the Department’s case rested on assumptions rather than conclusive evidence. It held that where receipt of goods is supported by documentation, testing records, and subsequent reversal of credit, denial of Cenvat credit is unsustainable. 

The judgment underscores the primacy of evidence-based adjudication and rejects suspicion-driven tax demands.