Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 451 - CESTAT BANGALORECENVAT credit - Duty demand on dealer for passing duty when the goods were actually not received - Held that:- Where the CENVAT credit has been [taken and utilised wrongly] or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of sections 11A and 11AA of the Excise Act or sections 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries. Therefore, the duty demand upheld by the lower authorities cannot be sustained. - Once the duty demand cannot be sustained, mandatory penalty under Section 11AC read with Rule 15 or 25 also cannot be imposed. Penalty under Rule 25 CENVAT Credit Rules - Mandatory penalty under Section 11AC - Held that:- The appellant had not chosen to seek cross-examination of both the parties even though their statements were relied upon. Moreover, the appellant has also not rebutted the evidences collected by the Revenue showing that vehicles were either non-existent or transporters fictitious. That being the case, this is a very clear case of supply of invoices and goods source of which is unknown which is something which has not been investigated but learned AR contended that goods from some other source might have been supplied. In any case, what is required to be established by the Revenue is that the appellant-dealer did not receive the goods and this has been established and therefore the contravention of provisions of CENVAT Credit Rules and Central Excise Rules can be said to have been proved. Under these circumstances, there cannot be any penalty on the Managing Director in the absence of a show-cause notice having been issued to him - Decided in favour of assessee.
|