9911796707
TMI Blog2009 (8) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary to prevent misuse of the CENVAT Credit. In exercise of the power so vested the Central Government have issued a Notification No. 32/2006-CE(NT), dated 30-12-2006, declaring that where a manufacturer, first stage or second stage dealer, or an exporter including a merchant exporter is prima facie found to be knowingly involved in any of the acts enumerated therein, an officer authorized by the Board may order withdrawal of the facilities or impose the restrictions specified in para 2 of the said notification. Paras 1 and 2 of the notification to the extent, the same are relevant may be extracted at this stage : "1. Deterrent against tax evaders:-Withdrawal of facilities from manufacturers, registered dealers or exporters indulging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e imposed on the facilities, namely: - (i) the facility of monthly payment of duties may be withdrawn and the assessee shall be required to pay excise duty for each consignment at the time of removal of goods; (ii) payment of duty by utilization of CENVAT credit may be restricted and the assessee shall be required to pay excise duty without utilizing the CENVAT credit. . . ." 2. The petitioner has in the present case suffered an order of withdrawal of the facility of monthly payment of excise duty for a period of six months from 22-5-2009 to 22-11-2009. The impugned order further directs that payment of excise duty by utilization of CENVAT credit as provided under rule 3(4) of the CENVAT Credit Rules, 2004, shall also be stopped with eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saw a vehicle coming out of the factory premises. On interception, the vehicle was found to be carrying 9.9 MT of M.S. Girder, without any accompanying invoice. Investigation revealed that the vehicle was being used for clandestine removal of the goods without an invoice and without payment of duty. Stock taking of finished goods and raw material, further revealed a shortage of 346 MT of M.S. Girders and 349 MT of M.S. Ingots. Besides, 59,393 litres of Furnace Oil was also found short, on which Cenvat credit had been taken. The total duty evasion was estimated to be Rs. 20,24,747. The incident regarding the removal of goods without payment of duty was corroborated by the statement of the driver, Sh. Joginder Sharma, who admitted that no inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwal have also not been either explained or withdrawn. Such being the position, a case for action in terms of rule 12CC of the Central Excise Rules, 2002 and rule 12AA of the CENVAT Credit Rules, 2004 read with the notifications issued under the same, the relevant part whereof has been extracted above, was clearly made out against the petitioner. If the removal of goods without the cover of invoice and without payment of duty was prima facie established, as was the position in the instant case, the facilities referred to in para 2 of the Notification extracted earlier could be ordered to be withdrawn as a measure of deterrence against such unauthorized removal and evasion of duty. The power to withdraw such facilities is clearly available t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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