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2014 (3) TMI 85 - CESTAT NEW DELHIWaiver of pre deposit - Fraudulent transactions - Availment of higher Cenvat Credit on rolled products which were described as Non Alloy Steel SLR, Bars & Rods of Non-Alloy Steel Rejected Cut pieces, Bars and Rods of Non-alloy Steel, Non-Alloy Steel Rounds(Rejected), Non-Alloy Steel Rounds (Rejected cut pieces), Round Bar S/L Rejected Round Bar Small Pieces, M. S. Round Cuttings and Non-Alloy Steel Round S/L Rejected. - Held that:- it does not make any economic sense in a competitive world to make the price of final product costlier by buying costly raw-materials as waste which is useable as such - In the normal trade parlance, no one will buy these types of products of rolling industry making it economically unviable and thus creating non-justification of such purchase. There is no justification in appellant’s plea that rolling materials have been purchased to improve the quality of their finished product. - balance of convenience clearly indicates paper transactions with intent to avail fraudulent credit. - once credit is Prima facie taken on finished goods in the guise of scrap, fraudulent activity clearly surfaces, Prima facie case is in the favour of Revenue - Stay granted partly.
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