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2017 (9) TMI 911 - AT - Central ExciseCENVAT credit - duty paying invoices - fake invoices - receipt of invoices only without receipt of goods - Penalty u/r 26 - Held that: - it is case of fraudulent Cenvat credit availed on the invoices issued by M/s. Ispat Industries Ltd and M/s. JSW Steel Ltd. - On the identical facts and under same investigation in many other cases, demands were confirmed. Reliance placed in the case of Amar Ispat Pvt. Ltd., Sandeep Garg, Mohammad A. Master, Mohsin Hajibhai Memon, Harikrishna B. Soneji, Ram Awatar Agarwal & Diamond Roadways Versus Commissioner of Central Excise, Thane-I [2015 (11) TMI 373 - CESTAT MUMBAI], where it was held that Since the invoices of such HR trimmings were of no use to them, they were trading the invoices through brokers based in Mumbai who in turn were locating the furnace units who could fraudulently avail the credit based on such invoices. The cash amount of HR trimmings being sent through angadia or other services from Viramgam and nearby area and were being converted into Bank Draft etc. through banking channels either by such. brokers or by manufacturers of ingots or was used in cash to purchase bazaari scrap/scavenger scrap, the demand upheld. The supplier M/s. Ispat Industries Ltd and M/s. JSW Steel Ltd have cleared the HR Trimming on payment of duty by issuing invoices in favor of person whose name were given by the auctioneer. The goods were sold at factory gate therefore act of fraudulent availment of credit which has taken place after removal of goods from factory, the appellant M/s. Ispat Industries Ltd and M/s. JSW Steel Ltd had no control therefore penalties imposed under Rule 26 on these appellant is not proper. Appeal allowed - decided in favor of appellant.
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