Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 524 - CESTAT CHENNAILevy of penalty on dealers who issues Bogus Invoices - Cenvat Credit - Bogus credit - It is alleged that the appellant-assessee availed ineligible and irregular credit of duty paid on MS scrap as if it was supplied by M/s.Victoria Steel Enterprises Ltd. based on the documents prepared indicating bogus transaction particulars, without actual/physical movement of the M.S. Squares said to have been used in the manufacture of TMT bars thereby contravened the provisions of Rule 4 (1) of Cenvat Credit Rules, 2004. - Held that:- appellant’s intention of violation of CER is established beyond doubt and they are liable for penalty both under Rule 15 (1) and Rule 26. So appellant’s contention that penalty is imposable only under Rule 15 and not under Rule 26 (2) is not sustainable and not acceptable. In this regard, Rule 26 of CER provides penalty for certain offences. Considering the peculiar facts of the instant case, where this entire circular paper transaction was created by the appellant and also considering the fact that there is apparently no revenue loss to the Department, the quantum of penalty imposed by L.A is on the higher side in respect of appellants, at Sl.No.1,2,4 & 5 of the Cause Title. Therefore, considering overall circumstances of the case, we reduce the penalty imposed under Rule 26 (2) (i) (ii) on the appellants. - Decided partly in favorof appellant dealers. Demand of cenvat credit - adjudicating authority dropped the demand of cenvat credit - Held that:- Though the appellants have created the documents by way of issuing documents and subsequently taking the credit without receipt of the goods, the appellants at the first instance have paid the duty by debiting the cenvat account which was again taken back by above paper transaction. Therefore, we do not find any infirmity in the order of adjudicating authority in so far as regularizing the credit and dropping of recovery of credit. Accordingly, the Revenue's appeal is rejected.
|