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2016 (3) TMI 397 - CESTAT NEW DELHI

2016 (3) TMI 397 - CESTAT NEW DELHI - 2016 (334) E.L.T. 664 (Tri. - Del.) - Clandestine removal - goods not actually manufactured and cleared - Held that:- Bogus invoices have no meaning in the face of full payment of duty, as such invoices will help unscrupulous entities to show higher expenditure and to derive financial benefits in tax matters etc. It is not clear how, even if accepted, such assertion is going to change the findings in the impugned order. The duty which is sought to be demande .....

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e findings in the impugned order - Decided against revenue - Excise Appeal Nos. 1190, 1423 of 2008 and 2730 of 2010 with C.O. No. 221 of 2010 (SM) - Final Order No. 50118-50120/2016 - Dated:- 22-1-2016 - SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) For the Petitioner : Shri R.K. Grover, Authorized Representative (DR) For the Respondent : Shri B.L. Narasimhan, Ms. Sukriti Das and Shri Manish Saharan, Advocates ORDER PER. B. RAVICHANDRAN :- These three appeals are filed by the Revenue against the orde .....

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5 M.T. of various inputs (raw materials) have been shown to have been cleared by the assessee without actual manufacture and clearance. It was also concluded that equivalent quantity of finished goods and inputs have been clandestinely manufactured/ cleared as such without payment of duty. Proceedings were initiated for demanding duty of ₹ 42,07,447/-. After due process the Original Authority issued order dated 07/9/2007 confirming the demand and imposing equal penalty on the main responde .....

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took the credit as the recipient of the impugned goods which has become a subject mater of further proceedings. In that proceedings, the Commissioner (Appeals) vide order dated 06/5/2010 upheld the eligibility of credit following the findings already made in respect of manufacturer/supplier of the impugned goods namely M/s Chakra Rolling Mills Pvt. Ltd. vide earlier order dated 07/3/2008. Aggrieved by this order, the Revenue filed appeal No. E/2730/2010. The respondent also filed a Cross Objecti .....

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ed Counsel for the main respondent submitted that : (a) there is no clarity in the allegation made by the Revenue either in the show cause notice or in the original findings. The admitted facts are that the main respondent/ assessee have discharged the indicated Central Excise duty of ₹ 42,07,444/- for which they issued due invoices and maintained all statutory accounts ; (b) the Department s case is there is no physical clearance of either finished goods or inputs as such. With this concl .....

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ties indicated in the show cause notice any further demand of duty should have been supported by some evidence of unaccounted manufacture or clearance. There is no semblance of such evidence in the present case. 5. The learned Counsel appearing for respondent in appeal E/2730/2010 submitted that the respondent [M/s Ind Synergy Ltd.] are one of the recipients of duty paid goods from the main respondent. Originally the credit was denied after the issue of order dated 31/1/2008 of Additional Commis .....

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was found to be unsustainable it follows that there is no impediment for them in availing the legally eligible credit. 6. Heard both the sides and examined the appeal records. At the outset it is to be pointed out that the original allegation and the present appeal which was based on such allegation present propositions which are peculiar and contradictory. The case of the Revenue is that based on detailed investigation it is established that the main respondent did not physically clear the imp .....

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ch has been observed, after detailed analysis, by the learned Commissioner (Appeals) in his order dated 07/3/2008. Some of the observations in the impugned order are revealing : 7. It is an undisputed fact that the applicants have discharged duty of ₹ 42,07,447/- on a quantity of 631.295 MT of inputs and 902.182 MT of finished goods. When this duty has already been paid on 631.295 MT of inputs removed as such and 902.182 MT and which is identical in all respects to the amount of duty deman .....

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182 MT and had removed the same after paying duty and had also removed 631.295 MT of inputs, as such, on payment of duty but these goods are not the ones which were supplied to the purchasers, as a different set of identical goods had been manufactured and clandestinely removed from the factory alongwith an identical set of inputs and for which accommodation invoices had been issued to the purchasers. If this is what the lower authority meant then he has to answer two instead of one question. Fi .....

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ty mean to say that the appellants, for the heck of it, paid excise duty on finished goods which were never manufactured and removed and also paid duty on inputs but which were never removed but accommodation invoices on this strength were issued to the purchasers. On the other hand, an identical set of finished goods were manufactured and clandestinely removed without payment of duty and so also inputs were removed as such but clandestinely. This proposition seems absurd and is not acceptable t .....

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