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2021 (1) TMI 657 - CESTAT CHANDIGARHCENVAT Credit - levy of penalty - allegation is that the vehicle in question is not capable of transportation of the goods - HELD THAT:- It is a fact on record that during the course of investigation, shortage of inputs was found. Further, duty free goods were also been unloaded which creates doubt that the appellant is procuring duty free goods and procuring invoices to avail the cenvat credit without receiving the goods; therefore, investigation took place. In the annexure to the show cause notice at Sr.No.1 & 2, the vehicles were found to be auto cycles and transportation of goods has been arranged by the appellant themselves. In these circumstances, the cenvat credit is not admissible to the appellant on the invoices issued by Kanhya Lal Jai Narain at S No. 1&2 of the SCN. Further, with regard to the invoice issued by Ram Parkash & Sons, their vehicle found to be Tractor Trailer and it has been alleged in the show cause notice that some of the vehicles were light goods vehicles which were later found to be heavy goods vehicles further the Tractor Trailer is capable of transportation of the heavy goods; therefore, on the invoices issued by Ram Parkash & Sons, the appellant is entitled to avail the cenvat credit and to that extent, no penalty can be imposed on the appellant at S.No. 3,4,9-13 of the SCN. Levy of Penalty - HELD THAT:- In the case of invoices issued by M/s Madan Industrial Corporation, the ld. Counsel has stated that they asked for D.T.O. report which was not supplied to them. Moreover, it is their statement on record that they have supplied the goods and received the payments and the buyer has arranged for transportation of the goods. In that circumstance, penalty on M/s Madan Industrial Corporation cannot be imposed, but it is also a fact that the transportation has been done by the appellant themselves and as per the D.T.O. report, the vehicles involved are scooters, which are not capable of transportation of heavy goods, therefore the cenvat credit to the manufacturer/buyer is denied. Appeal disposed off.
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