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2019 (6) TMI 1066 - AT - Central ExciseCENVAT Credit - fake invoices - fraudulent availment of CENVAT Credit based on CENVAT invoices issued by certain registered Central Excise Dealers without actual supply of material - HELD THAT:- It is an undisputed fact that the appellants have availed credit on fictitious invoices. There was no movement of goods at all. As per Rule 3 of CCR 2004, credit can be availed on invoices issued by the manufacturer/dealers. The credit is eligible on the duty paid goods/inputs received in the factory and used in manufacture of finished products. In the present case, there was no receipt of goods into the factory. The book adjustments with regard to CENVAT duty has to be as per the provisions of CENVAT Credit Rules 2004. The provision clearly states that credit is available when the goods are received in the factory. The law does not allow to issue invoices without receipt of goods. It is conceded by the appellants that fictitious invoices were generated and passed on. Irregular availment of CENVAT Credit is very much clear from the narration of the facts itself and the said fraud would not have come to light but for the investigations conducted by the Officers of DGCEI. It is sufficiently established that the appellants had deliberately suppressed and misstated facts with intent to avail wrong CENVAT Credit which they are not otherwise eligible - the impugned orders do not call for any interference with regard to confirmation of demand or penalties on the appellants. Demand of penalty - HELD THAT:- When equal penalty has been imposed on the assessee M/s Reliance Cellulose Products Limited, the penalty of ₹ 22.00 lakhs on the Managing Director, in our view, is on higher side. We, therefore, reduce this penalty to ₹ 10.00 lakhs. Only. But for this interference, the confirmation of demand, interest or the penalties imposed on other assessees as well as Managing Director of M/s Pavan Drugs & Chemicals Pvt. Ltd. does not call for any interference. Appeal allowed in part.
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