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M/s Multimetals Ltd. Versus Assistant Commissioner, Central Excise Division, Kota & ors.

2016 (8) TMI 754 - RAJASTHAN HIGH COURT

Cenvat credit - wrongly availed in contravention of Rule 3(4) of the Central Credit Rules, 2004 - assessee is said to have purchased Copper Wire in the invoices, manufacturer is shown as M/s Navneet Yarn Pvt. Ltd. and the description of the goods is shown as Copper Wire which is 99% of purity and admittedly it has been found during investigation that M/s Navneet Yarn Pvt. Ltd. is not at all a manufacturer of Copper Wire rather has been found to be a manufacturer of entirely different product nam .....

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authorities who in unison have come to the conclusion that the Cenvat Credit was wrongly taken. Even if the seller is a registered dealer under Central Excise and an assessee under Sales Tax Laws, Income Tax Laws and other statutory laws and payment is by cheque, in our view, will not make any difference as long as on investigation it revealed that the goods purchased were not proved to the hilt and Revenue has made out a clear cut case of irregular availment of Cenvat Credit. Therefore, we fin .....

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2006. 2. Brief facts noticed are that the appellant-assessee is a manufacturer of Copper Tube, Copper Rods, Copper Alloy Wire etc. falling under Chapter sub heading No.74111000, 74072910 & 74082290 of the First Schedule to the Central Excise Tariff Act, 1985. The adjudicating authority was of the view that the assessee had wrongly availed Cenvat Credit amounting to ₹ 7,32,747/- in contravention of Rule 3(4) of the Central Credit Rules, 2004. It was the claim of the Revenue that the ass .....

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e any facility to manufacture Copper Wire in their factory and it was noticed by the Assessing Officer (for short, 'AO') that from the investigation it was revealed that claim for having procured raw material- copper rod by M/s Navneet Yarn Pvt. Ltd. was found to be fake. Accordingly, a show cause notice was issued by the respondents to the assessee which was responded to and it was contended that in so far as the assessee is concerned, it had purchased goods from M/s V.K. Enterprises, w .....

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dealer of the Central Excise Division but also registered under the Income Tax Act, Sales Tax Act etc. Thus, it was contended that merely because M/s Navneet Yarn Pvt. Ltd. has been treated to be bogus, the claim of the assessee could not be rejected. However, the AO was not satisfied and passed order rejecting the contention of the appellant. 3. The appeal filed by the assessee before the Commissioner, also failed and the further appeal filed by the assessee before the Tribunal too came to be .....

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ving been physically received by the assessee from M/s V.K. Enterprises, therefore, the Cenvat Credit was correctly taken by the assessee. He further contended that it was not for the assessee to prove source of the source when admittedly M/s V.K. Enterprises has been found to be a concern duly registered under all statutory authorities namely; Income Tax, Sales Tax, Central Excise etc. and the assessee is not required to enquire as to from whom (V.K. Enterprises) it had purchased the goods. All .....

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llant-assessee and have perused the order impugned and the other material placed on record. 6. Admittedly, M/s V.K. Enterprises, from whom the assessee is said to have purchased Copper Wire in the invoices, manufacturer is shown as M/s Navneet Yarn Pvt. Ltd. and the description of the goods is shown as Copper Wire which is 99% of purity and admittedly it has been found during investigation that M/s Navneet Yarn Pvt. Ltd. is not at all a manufacturer of Copper Wire rather has been found to be a m .....

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g used to manufacture finished product. It would be appropriate to quote the questions raised by the Revenue and the reply given by Mr. D.B. Bhatnagar, President of the assessee which provides ad-infra:- Question No.1. Please state of what percentage of Copper you had received the above said two consignments of Copper Wire from M/s. V.K. Enterprises, Bhiwadi. Please also submit the Lab testing report, if any in respect of the above two consignments? Answer: We require Copper as input of 99.9% pu .....

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copper wire by pressing and cutting the same into small pieces for their convenience to put the same in the bags. It is further clarified that the aforesaid the two consignments were received by us as copper wire scrap and the copper wire was not in any continuous length. Question No.3. Do you require Copper Wire drawn from Copper Rods for the manufacture of any goods in your factory other than the use of wire as scrap for melting? Answer: No, we require all the Copper products as scrap for melt .....

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