Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 990 - CESTAT NEW DELHIConfirmation of Cevat credit on shortage of goods i.e; Ferro Silicon Lumps/Ferro Manganese correct or not - The appellant’s plea there was no shortage of the goods as the same were available in the factory at the time of stock checking, is difficult to accept, in the background of fact that they have paid the duty involved on the goods found short - If the goods actually were available in the factory, any normal businessman would have pointed this out the very next day and he would not have waited for more than 2 weeks - the appellant’s stand under their letter dated 28/12/07 that there was no shortage of the goods is only an afterthought and that this is a case where the Cenvat credit had been taken without actually receiving the goods, as has been clearly stated by Shri Mahesh Kumar Sharma in his statement. If the shortage was due to inability of Shri Mahesh Kumar Sharma to locate the goods, he would not have given such a categorical statement that no goods had been received - This statement of Shri Sharma had not been retracted by him - Just because the suppliers who had issued the invoices have claimed to have supplied the goods and have claimed to have received the payment, it does not nullify the fact that at the time of stock taking on 12/12/07, the goods covered under these invoices were not available and even for more than 2 weeks after the detection of the shortage, the appellant were not able to produce the goods supposed to have been received under these invoices - there is no infirmity in the order upholding the Cenvat credit demand alongwith interest and imposition of penalty of equal amount. Penalty under Rule 25(1)(a) and (d) – Held that:- The penalty imposed during the period when this fraudulent Cenvat credit had been taken to which the appellant were not entitled, the excisable goods had been cleared by payment of duty through Cenvat credit while there was no sufficient Cenvat credit balance and, as such, those clearances would have to be treated clearances having been made without payment of duty – the penalty has been correctly imposed – Decided against Assessee.
|