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2015 (2) TMI 185 - HC - Central ExciseAvailment of CENVAT Credit - Fraudulant availment - appellant allegedly purchased CC copper rods from M/s R.K. Enterprises through its proprietor Shri R.K.Gupta - The premises of Shri R.K.Gupta were raided - R.K. Gupta made a statement on 16.01.2001 that he had not delivered goods but had only facilitated parties in obtaining fraudulent modvat/cenvat credit - Held that:- A perusal of the show cause notice and the order in original reveals that the adjudicating authority, while holding the appellant liable, has placed sole reliance upon the statement made by Shri R.K.Gupta that transport companies mentioned in GR books are fictitious, the description of goods in the invoices differs from purchase invoices and in some invoices the mode of transport is different from the purchase invoices, without referring to that part of the statement that exonerates the appellant or referring to invoices and documents relating to the appellant. The statement by Shri R.K.Gupta has to be read in its entirety, including the portion exonerating the appellant alongwith a detailed reference to the bills, invoices, receipts, cheques and various forms and declarations etc. filed by the appellant before the department but unfortunately have not received due consideration. An allegation of fraud must necessarily be proved by the person who levels such an allegation. Where, however, the department succeeds in prima-facie proving its allegation of fraud, the onus would shift to the assessee to prove the genuineness of the transaction. The department relies upon the statement made by Shri R.K. Gupta, the cheque signed by the appellant company recovered from the premises of Shri R.K.Gupta, the alleged discrepancies in description of goods in invoices and purchase invoices, the different mode of transport mentioned in purchase invoices, various documents i.e. fraudulent GR books/receipts, rubber stamps etc. recovered from the office of Shri R.K.Gupta but without a detailed reference to the appellant's transactions, part of the statement by Shri R.K.Gupta exonerating the appellant and without examining for RG 23-A part I, RG 23-A part II, details in cenvat return filed under Rule 57 A(c) of the Central Excise Rules, 1944 and RG 12 submitted to the Central Excise Department, Faridabad. The mere fact that the appellant purchased goods from Shri R.K.Gupta, would not by itself raise an inference of culpability or wrong doing. - Impugned order is set aside - Decided in favour of assessee.
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