Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 614 - AT - Central ExciseCENVAT Credit - credit availed by the respondent denied for the reason that the declared registered factory premises of the so called manufactures were non-existent and these manufacturers were either not working or working on papers only - burden to prove - HELD THAT:- The Commissioner (Appeals), as can be seen from the order, even after accepting that the invoices had been issued fraudulently still proceeded to grant relief to the respondent by holding that they were not bogus or fake and, therefore, CENVAT credit taken on the basis of such invoices are admissible. This finding is contrary to the factual position emerging from the records. M/s Aditya Enterprises was not in existence; M/s Shree Ram Engineering & Casting was not a manufacturing unit and in fact was engaged in construction of residential apartments; and M/s Ganesh Udyog and M/s L.S. Construction were not found on the mentioned address. It is clearly established that neither these firms were engaged in the manufacture of goods nor they had sold or cleared the goods but had generated invoices only for the purpose of passing CENVAT credit - It is also difficult to accept the finding of the Commissioner (Appeals) that the respondent was not a party to the fake transactions. It is only the respondent who was to gain by adoption of such a mode and, therefore, the conclusion that even though only invoices were received by the respondent without the goods, the respondent had no role to play is perverse. The two decisions in GIAN CASTINGS PVT. LTD. VERSUS COMMISSIONER OF C. EX., CHANDIGARH [2015 (11) TMI 1096 - CESTAT NEW DELHI] and DUTT MULTIMETALS PVT. LTD. VERSUS C.C.E., CHANDIGARH-I [2016 (11) TMI 1329 - CESTAT CHANDIGARH] rendered by learned single members do not help the respondent. In these cases there was no evidence, whereas in the present case there is enough evidence on the record to establish that fake invoices were issued only to benefit the respondent. Appeal allowed - decided in favor of appellant.
|