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2017 (12) TMI 603 - AT - Central ExciseCENVAT credit - fake invoices - Department found that the machines installed in the factory premises of M/s. Satvik Industries and the number of employees were insufficient to manufacture the PVC insulated wire and winding wire of copper that is their final product - Held that: - The expression “reversal of credit” is normally used when wrong credit is reversed by debit in the cenvat credit account without issue of any invoice. The expression is also used when any inputs on which credit is taken is cleared as such (without use in further manufacturing) by covering the inputs so cleared by invoice on which duty reversal is shown. These situations are inherently different from the situation where credit is taken fraudulently and then used for issuing invoices showing utilization of cenvat credit because the person issuing the invoices enables the person receiving the invoice to take credit of duty so shown as paid. The Cenvat credit rules provide for availing cenvat credit on inputs subject to the condition that an invoice is issued with all necessary details of the goods and duty paid in favour of the recipient. It is further a necessary condition that the goods should accompany the invoice - In the present case it stands admitted by all concerned persons that only invoices have been issued for transfer of credit and no goods have accompanied such invoices - Verifications have been undertaken with the RTO authorities with reference to the specific registration numbers of vehicles found in the invoices. This evidence conclusively establishes that the invoice indicating the duty amount has covered only paper transactions and cannot be a valid document for transfer of credit. Appeal dismissed - decided against appellant.
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