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2014 (4) TMI 95 - AT - Central ExciseCENVAT Credit - Bogus invoices - Interest - Commissioner set aside interest - Held that:- It is evident that fraud has been committed and fake invoices have been issued enabling dealers/buyers to take fraudulent credit. There is clear admittance of fraud as goods received by the respondent were from the open market. There was absolutely no co-relation. I agree with the revenue that goods have not come to the factory under the cover of specified documents evidencing payment of duty thus there could be no availment of credit. Further in the present case, there is issue of fake invoices without receipt of goods by the suppliers involving fraud. No duty was paid and goods were procured from open market. There could be no availment of Cenvat credit on fake invoices as it involves fraud. Fraud nullifies everything. Once it is proved that credit has been fraudulently availed on fake invoices, credit has to be reversed with interest for the period of its utilization. Commissioner (Appeals)s order justifying availment of credit and subsequent holding that interest is not required to charged does not have legs to stand as fraud is clearly manifested. I am also not able to agree with the findings that since goods were admittedly procured from open market, and receipt has not been disputed in the factory there did not arose any questions of charging interest - Decided in favour of Revenue.
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