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2015 (10) TMI 1029 - CESTAT NEW DELHI

2015 (10) TMI 1029 - CESTAT NEW DELHI - 2015 (329) E.L.T. 584 (Tri. - Del.) - Duty evasion - CENVAT Credit - Bogus invoices - Parallel invoices - Held that:- Duty demand against the appellant is based on the allegation that in respect of 1467 consignments of automobile parts had been sold to original equipment manufacturers (OEMs) and 409 consignments of automobile parts sold to non OEM customers, in respect of each such sale, the appellant have issued two invoices bearing the same number and sa .....

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this, we hold that the impugned order confirming the duty demand of ₹ 2,05,53,961/- has to be upheld.

Initially the goods had been cleared on payment of duty and on being found defective the same were returned by the customers for repair/reconditioning, and no credit of duty paid on the goods was taken by the appellant, in our view, while returning the goods after repair, no duty is required to be paid. Therefore, in these circumstances, even if the appellant cleared the defecti .....

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However, debit entry shown in the loose copies of invoices were found to be different from the duty payment shown in the same invoice number which were available in the records of the central excise authority. Since there is no explanation regarding this discrepancy, we are of the view the duty demand of ₹ 73,821/- has to be upheld.

As the provisions of section 11AB had been introduced in Central Excise Act with effect from 28.9.96, the interest would be chargeable in respect of .....

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confiscation. Therefore, penalty on Shri Suresh Garg and Shri K.P.Chitrasenan is set aside. However, as regards imposition of penalty on Shri V.K.Mehta, Managing Director under Rule 209 is upheld. - Decided partly in favour of assessee. - Appeal Nos. E/3892-3895/2004-EX - Final Order Nos. A/51556-51559/2015-EX(DB) - Dated:- 10-4-2015 - Rakesh Kumar, Member (T) And S K Mohanty, Member (J),JJ. For the Appellant : None For the Respondent : Shri Ranjan Khanna, AR ORDER Per: Rakesh Kumar: The facts .....

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ional Central Excise Officers, and in the course of search of the factory premises, a number of invoices were found which appeared to be parallel invoices. The investigating officer studied the documents taken over by them and made enquiry with the Managing director and employees of the company. There are four allegations against the appellant company involving duty evasion:- (1) On study of the invoices, it was found that, during the period of dispute, the appellant supplied automobile componen .....

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the entries was bogus. In respect of each sale, the invoice of earlier date was found to be containing bogus duty payment details and on the basis of that invoice, the customers had taken credit. Similarly, during the same period, total 409 sales were made to non OEM customers. In respect of each sale, two invoices of the same number were issued on different dates, the invoice on the earlier date was containing bogus duty payment details. The investigating officers were of the view that the goo .....

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s. The appellant after clearing the goods after repair/reconditioning had issued cenvatable invoices showing payment of duty through cenvat credit account but debit entry was found to be bogus and as such no duty had been paid either through cenvat credit account or through PLA. The appellant while receiving defective goods, had not taken credit of the duty paid on the goods and therefore, under Rule 173H should have returned the goods without payment of duty under challan etc. but instead, they .....

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triplicate and duplicate copies of the invoices had been signed by different persons. The duty demand of ₹ 70,128/- (4) The duty demand of ₹ 73,821/- is in respect of certain loose pre-authenticated invoices duly signed by the representative of the assessee and duly incorporating date and time of removal with PLA debit entry number and date. However, debit entry shown in the loose copies of invoices were found to be different from the duty payment shown in the same invoice number wh .....

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Manager Finance and Shri K.P.Chitrasenan, Excise Assistant respectively. Against this order of the Commissioner, these appeals have been filed. 2. None appeared for the appellant, though the notice for hearing had been sent to them well in time. It is seen that on earlier occasion also none represented the appellant. There is letter dated 23.1.2015 of Shri Laximkumaran, Advocate addressed to the Registrar stating that while they were representing the appellant in the case but due to unavoidable .....

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rder. 4. We have considered the submissions of ld.DR and have gone through the memo of appeal and written submissions submitted earlier by the appellant. 5. The main duty demand of ₹ 2,05,53,961/- against the appellant is based on the allegation that in respect of 1467 consignments of automobile parts had been sold to original equipment manufacturers (OEMs) and 409 consignments of automobile parts sold to non OEM customers, in respect of each such sale, the appellant have issued two invoic .....

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convincing, as during the same period in respect of other consignments i.e. in respect of 1318 consignments only one invoice has been issued and there was no such irregularity. In view of this, we hold that the impugned order confirming the duty demand of ₹ 2,05,53,961/- has to be upheld. 6. As regards, the duty demand of ₹ 1,75,951/- in respect of defective goods returned by the customers cleared after repair/reconditioning, there is no dispute that initially the goods had been cle .....

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edit account or through PLA. Since in this case, there is no dispute that initially the goods had been cleared on payment of duty and on being found defective the same were returned by the customers for repair/reconditioning, and no credit of duty paid on the goods was taken by the appellant, in our view, while returning the goods after repair, no duty is required to be paid. Therefore, in these circumstances, even if the appellant cleared the defective goods under cenvatable invoices by showing .....

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fferent persons, since there is no irregularity in respect of such clearance, in our view, the duty of ₹ 70,128/- is not justified and the same is set aside. 8. As regards the duty demand of ₹ 73,821/- it is in respect of certain loose pre-authenticated invoices duly signed by the representative of the assessee and duly incorporating date and time of removal with PLA debit entry number and date. However, debit entry shown in the loose copies of invoices were found to be different fro .....

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