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2018 (5) TMI 1040 - AT - Central ExciseCENVAT credit - fake invoices - invoices raised but goods not delivered - confiscation - redemption fine - penalties. Held that: - the partnership firm M/s Sunrise Metal Corporation and M/s Prathmesh Steel were registered dealers; they have issued invoices to M/s Harisons Steel Ltd., on which description of the goods was steel scrap while factually the vehicle contained bazaar scrap, which may have enabled Harisons Steel Ltd, to avail ineligible CENVAT credit that an investigation was carried out in the factory premises of Harisons Steel Ltd. and various registered dealers were engaged in the similar modus operandi. Penalties on the partnership and on the individuals - Held that: - M/s Sunrise Metal Corporation and M/s Prathmesh Steel being registered dealer would be covered under the provisions of Rule 25 (1) (d) of Cenvat Credit Rules, 2004, as they have contravened the provisions of Central Excise Acts and Rules made thereunder by issuing an invoice which was not accompaning by the goods as indicated on the documents - Upholding the of imposing penalty on the said firm, interest of justice can be met if penalty imposed on M/s Sunrise Metal Corporation is reduced to ₹ 70,000/- from ₹ 1,31,168/- and in the case of and M/s Prathmesh Steel to ₹ 25,000/- from ₹ 67,677/-. Personal penalty imposed on the partnership firm - Held that: - the penalty imposed is almost equivalent of duty liability which is sought to be demanded and reversed in order to meet ends of justice, the personal penalty imposed on Shri Vikram Mehta, partner of M/s Sunrise Metal Corporation is reduced to ₹ 60,000/- from ₹ 1,31,168/- and in case of Jitendra to ₹ 25,000/- from ₹ 67,677/-. Confiscation - redemption fine - Held that: - The finding of the first appellate authority that the consignments in the trucks were cleared as per invoices but were replaced with goods with intention to mislead Revenue by suppressing the facts, hence liable for confiscation at par with the goods meant for concealing, is the finding which are very assumptive and presumptive in nature and being so needs to be set aside - confiscation and redemption fine set aside. Appeal allowed in part.
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