Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 196 - AT - Central ExciseCENVAT Credit - non-existent firms - firms were declared as fake/ non-existent/ bogus/ fictitious - HELD THAT:- When all the invoices that too issued by 22 firms were given to the Appellant after endorsement, he should have verified the fact. In the light of bunch of Alert Circular issued by the department it is thus just obvious that the non-existent firms were issuing invoices in bulk to the persons just to avail fraudulent credit. It is not disputed that the credit was availed on the invoices issued by all fradulent firms who were found to be non-existent and such fraud vitiates the transaction. The invoice cannot be held valid for availing credit. The revenue should not suffer on account of such mass fraud. None of the above steps to ensure legal payment of duty by the person issuing invoice were taken by the Appellant and hence they are liable for consequence of the same. The credit is thus not available to them. Moreover looking to the aspect that in all the invoices were received from 22 firms were found to be non-existent, which came to notice of the department only after investigation and this cannot be a mere co-incidence. This means that it was modus operandi for passing and receiving fraudulent credit by issuing invoices to cause massive loss to the exchequer. The Appellant did not fulfill the obligation cast upon them and the fraud came to the knowledge only after investigation which means that the situation of passing of and availing fraudulent credit was so grave that it led to issue of number of Alert Circulars by the department. Appeal dismissed - decided against appellant.
|