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2018 (7) TMI 321 - CESTAT KOLKATAPenalty u/s 11AC - fraudulent availment of CENVAT credit - fake invoices without actual receipt of goods - paper transactions - Held that:- It is evident from the record that the Assessee reversed the credit availed on the basis of the invoices issued by the two supplier companies. It was found that the credit was availed on the basis of the invoices without actual receipt of the goods. Apparently, fact of reversal of credit is linked with non-receipt of the inputs and no other conclusion can be drawn - the Order of the Commissioner (Appeals) regarding the setting aside of the penalties cannot be sustained. The Tribunal in the identical situation in the case of M/s. Steel Centre [2017 (9) TMI 1251 - CESTAT KOLKATA] upheld the demand of CENVAT Credit along with interest and imposition of penalty on the assessee and reduced the penalties on the co-noticees. Penalty imposed on M/s. Bindawala Cables & Conductors Limited is upheld subject to the option of payment of 25% of duty within 30 days under Section 11AC would be allowed - Penalty imposed on Shri Bhagwandas Bindawala is set aside - Penalties imposed on M/s. Bindawala Electricals Industries Ltd. and M/s. Kritika Wires Pvt. Ltd. are reduced to ₹ 2 Lakhs each. Appeal disposed off.
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