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2022 (11) TMI 946 - AT - Central ExciseLevy of penalty u/r 26 of Central Excise Rules, 2002 - fraudulent passing of cenvat Credit by the appellant to Shree Balaji Castings - demand based on confessional statements of the witnesses - HELD THAT:- As regard the invoice issued by the appellant the statements were recorded from Shri. Subhash Chaudhary, Authorized Representative of Shree Balaji Castings and also of Shri. Anshu Agrawal, Partner of Shree Balaji Castings. It is also observed that statement of Shri. Vijay Khurana of M/s Impex World also recorded. Shri Subhash Chaudhary and Shri. Anshu Agrawal clearly stated that they have received the invoice of M/s Impex world whereas they had not received the goods. It is also observed that details mentioned in the invoices were not capable of transporting the goods for which the cenvat credit was passed on. Therefore, from the discussion and finding which is based on the confessional statements of the witnesses, it is clearly established that the appellant has facilitated by only issuing the invoice without supplying the goods for passing of the fraudulent cenvat credit of Rs 3,93,715/-. Therefore, the appellant was rightly liable for penalty under Rule 26. However, looking to the amount of cenvat credit passed on by the appellant the penalty of 2 Lacs appears to be very harsh - the penalty is reduced from Rs 2 Lacs to Rs. 1 Lac. Appeal allowed in part.
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