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2020 (3) TMI 1339 - CESTAT CHANDIGARHEnhancement of penalty - fraudulent availment of CENVAT Credit - premises taken on lease, genuine or not - also, the address declared in the registration certificate was not genuine - HELD THAT:- The respondent had obtained the dealer registration from the Department. After necessary investigation by the Department, it was noticed that the address declared in the registration certificate was not genuine. Accordingly, the invoices issued by the respondent dealer were held to be invalid. Consequently, on adjudication, penalty was imposed on the dealers-respondent and also imposed on the second stage dealers, who had purchased the goods from the Respondent and issued invoices to the manufacturers. The respondents are first stage dealers and it is the only evidence against the respondent that the premises declared by them being taken on lease, found to be not genuine when contradictions were noticed relating to the Rent Agreement. Accordingly, it is presumed that the goods in question purchased by them and CENVAT Credit ultimately passed on to the second stage dealer/manufacturer could not also be genuine. There is no conspiracy theory established by the Revenue involving the manufacturer of inputs, and first stage dealer/ second stage dealer and the end user manufacturer of the inputs involving the respondent. The Commissioner imposed penalty when contradictions were noticed in the declaration filed for obtaining Dealer’s Registration and also the quantum of penalty accordingly determined. Since no other evidence has been brought on record by the Revenue to establish any complicity on the part of the respondent, the impugned order does not warrant any interference - Appeal dismissed - decided against Revenue.
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