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2018 (7) TMI 1364 - AT - Central ExciseCENVAT Credit - fake invoices - it was alleged that Cenvat Credit availed on the strength of invoices issued by various raw material suppliers as they have fraudulently passed on the Cenvat Credit by issuing invoice only without actual supply of material. Held that:- In the entire investigation, the evidences which were brought on records are RTO reports according to which the vehicle number shown in invoices are not capable of transporting the heavy goods like inputs and the two transporters’ admission that the goods were not supplied to the appellant - Contrary to this evidences the fact that the appellant have recorded the receipt of the goods in their cenvat account i.e. RG-23A, the purchase of the goods under the invoices in question were booked in books of accounts. The payment against the said invoices were made through cheque, even the payment of transportation was also made by cheque. The Revenue could not bring any evidence that the goods covered under the invoices were diverted to any other place. It is also not the case of the department that the appellant have procured some unaccounted inputs to cover up the quantity of input shown in the invoices. The statement of managing director of the appellant company is exculpatory - The appellant have recorded the receipt of the goods in RG-23 part –I register and payment of the same was made through cheque. The finished goods were cleared on payment of Central Excise duty. Transportation charges were also paid by account payee cheque and such payment was accounted for in the books of accounts. The clearances of all the goods from the suppliers premises was never disputed. The payment of transportation was made after deduction of TDS. All the suppliers affirmed the sale of goods and receipt of payments for such sale. There is no evidence that the inputs shown in the invoices received by the appellant were not used in the manufacture of final product. Department has not disputed the correctness of quantity manufactured by the appellant recorded in their daily stock account. The service tax payment in respect of transportation of goods also establish the transportation of goods - merely on the basis of the RTO reports, it cannot be concluded that the inputs were not received by the appellant. The facts are established that the appellant have received the inputs in their factory used in the manufacture of final product and same was cleared on payment of duty - credit cannot be disallowed - appeal allowed - decided in favor of appellant.
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