TMI Blog2015 (2) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by Shri R.K.Gupta that transport companies mentioned in GR books are fictitious, the description of goods in the invoices differs from purchase invoices and in some invoices the mode of transport is different from the purchase invoices, without referring to that part of the statement that exonerates the appellant or referring to invoices and documents relating to the appellant. The statement by Shri R.K.Gupta has to be read in its entirety, including the portion exonerating the appellant alongwith a detailed reference to the bills, invoices, receipts, cheques and various forms and declarations etc. filed by the appellant before the department but unfortunately have not received due consideration. An allegation of fraud must necessari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06.08.2002, passed by the Commissioner Central Excise (Appeals), Delhi-II, order dated 29.04.2003, passed by the Customs, Excise Gold (Control) Appellate Tribunal, New Delhi and order dated 02.07.2004, passed by the Customs, Excise Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as the 'CESTAT'). The appellant is engaged in the manufacture of copper wire and availed modvat/cenvat credit on duty paid inputs namely CC copper rod. During 2000-01, the appellant allegedly purchased CC copper rods from M/s R.K. Enterprises through its proprietor Shri R.K.Gupta. The premises of Shri R.K.Gupta were raided. Shri R.K. Gupta made a statement on 16.01.2001 that he had not delivered goods but had only facilitated pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 lac. The appellant thereafter filed an application for rectification which was dismissed for non-prosecution on 02.07.2004 but pursuant to an order passed in a writ petition, the rectification application was reconsidered by the CESTAT and eventually dismissed on 29.04.2005. Counsel for the appellant submits that a perusal of the show cause notice, the order in original, the order passed by the appellate authority as well as the order passed by the CESTAT reveals that apart from the statement made by Shri R.K.Gupta, proprietor M/s R.K. Enterprises, no other incriminating material is referred to or available on record. The mere fact that Shri R.K.Gupta may have been guilty of enabling parties to avail fraudulent modvant/cenvat credit, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs, Excise Gold (Control) Appellate Tribunal, New Delhi, and order dated 02.07.2004, passed by the CESTAT. The respondent, unearthed a huge fraud allegedly perpetuated by one Shri R.K.Gupta, proprietor of M/s R.K.Enterprises. The modus adopted by Shri R.K.Gupta was to issue invoices without any actual delivery of goods enabling the alleged consignor to obtain fraudulent modvat/cenvat credit. A search of the residential premises of Shri R.K.Gupta led to recovery of voluminous incriminating evidence in the shape of slips, fake GR books, numbering machines, blank cheques, stamps of various officers of the department. It also transpired that the alleged office in Faridabad was a single room taken on rent by Shri R.K.Gupta without any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oices (Modvatable) issued by my firm were bogus. That is actual delivery of the goods covered in the invoices never affected. In order to give authenticity and credibility to each transaction I got printed the aforesaid mentioned G.R. Books in the name of various transport cos. I once again clarify that these companies are fictitious and are my creation and that do not exist. A perusal of the show cause notice and the order in original reveals that the adjudicating authority, while holding the appellant liable, has placed sole reliance upon the statement made by Shri R.K.Gupta that transport companies mentioned in GR books are fictitious, the description of goods in the invoices differs from purchase invoices and in some invoices the mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books/receipts, rubber stamps etc. recovered from the office of Shri R.K.Gupta but without a detailed reference to the appellant's transactions, part of the statement by Shri R.K.Gupta exonerating the appellant and without examining for RG 23-A part I, RG 23-A part II, details in cenvat return filed under Rule 57 A(c) of the Central Excise Rules, 1944 and RG 12 submitted to the Central Excise Department, Faridabad. The mere fact that the appellant purchased goods from Shri R.K.Gupta, would not by itself raise an inference of culpability or wrong doing. We, therefore, allow the appeal, set aside the order passed by the CESTAT and remit the matter to the CESTAT for adjudication afresh after examining the statement made by Shri R.K.Gupt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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