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2015 (11) TMI 1244 - AT - Central ExciseDenial of Cenvat Crredit - Bogus invoices - Issue of invoices without actual receipt of goods - Held that:- M/s. Agarwal Metal Co. / Works is a manufacturer of brass strips/ circles and supplying the same to the Registered dealers, namely, M/s. AMCo. & AMCorpn. against duty paid invoices. Thereafter, these AMCo. & AMCorpn. are supplying the goods to manufacturer buyers and description was shown in the invoices as brass sheets instead of brass circles / strips. Apart from this evidence, no other corroborative evidence has been produced by the Revenue to allege that manufacturer buyers have received the invoices only but have not received the goods against these invoices. No investigation has been done at the end of transporter or check post to ascertain the facts against the impugned invoices, the manufacturer buyers had received goods or not. Moreover, no other corroborative evidence has been produced by the Revenue from where these goods i.e. brass sheets procured by manufacturer buyers. In the absence of any corroborative evidence, the Cenvat credit to manufacturer buyer cannot be denied. Cenvat credit cannot be denied to manufacturer buyers. Further, in the case of Delhi Control Service this Tribunal (2013 (8) TMI 921 - CESTAT NEW DELHI) has taken the same view. With these observations, the orders of denial of Cenvat credit to manufacturer buyers and consequently demand of duty along with interest are not sustainable. Therefore, the penalties on manufacturer buyers are not imposable. As in some cases, some amount has been paid by M/s. AMCo. & AMCorpn. during the course of investigation, that amount cannot be claimed by manufacturer buyer / M/s. AMCo. & AMCorpn. as refund, consequent to this order. As demand of duty against manufacturer buyers is not sustainable, consequently, penalties on manufacturer buyers cannot be imposed. - Decided in favour of assessee.
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