New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (9) TMI 932 - CESTAT HYDERABAD

2016 (9) TMI 932 - CESTAT HYDERABAD - TMI - Cenvat credit - aluminum profiles, channels, wire rods, sheets - not issued for or utilized in the manufacture of the final products - shortages of inputs and wrong availment of Cenvat credit without receiving inputs - whether the conclusions in the impugned order confirming the culpability of the appellant and the allegation that they had wrongly availed credit on goods which were found not issued or utilized in the manufacture of final products are c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vo adjudicating authority has made an in depth analysis concerning shortages noticed of aluminium extrusion hollow profiles and aluminium scrap etc. These shortages have been accepted by the appellant; they have made deposit and further Managing Director of the appellant attributed the shortages to mismanagement in the factory. - It is seen that the lower authority has after detailed analysis, satisfied himself that the show cause notice allegations are indeed correct. The appellants have n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. E/517 & 520/2007 - Final Order No. A/30831 to 30832/2016 - Dated:- 11-7-2016 - Ms. Sulekha Beevi, C.S., Member(Judicial) And Mr. Madhu Mohan Damodhar, Member(Technical) None for the Appellant Shri Nagendra Rao, AR for the Respondent ORDER [ Order per: Sulekha Beevi, C.S. ] 1. Brief facts are as under: 1.1 The appellants are manufacturers of aluminum alloy ingots falling under chapter sub-heading No.7601.10 of Central Excise Tariff Act, 1985. 1.2 Department found that the appellants were using .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d noticed certain discrepancies with regard to stock position. 1.3 On scrutiny of records, it was observed that the assessees availed an amount of ₹ 99,65,585/- as MODVAT/Cenvat credit on the goods like aluminum profiles, channels, wire rods, sheets during the period from July, 2000 to May, 2003, which apparently were not issued for or utilized in the manufacture of their final products. Also, no evidence was shown by the assessee to the effect that they were actually used in the manufactu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ers No.1186 and 1187 /2006 dated 11-07-2006, remanded the matter to Commissioner to grant the appellant full opportunity to establish their contention that inputs are of duty paid nature and were utilized in the manufacture of final product. On de-novo adjudication, vide an order dated 13-04-2007 the adjudicating authority once again confirmed the proposals of the show cause notice, also imposing a penalty of ₹ 5 lakhs on Shri. M. Venugopal Reddy. Hence these appeals. 4. The case was taken .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

djournment on the ground that, As I am indisposed and advised rest for a week , which in our opinion is not a satisfactory ground for adjournment, especially when this bench has been repeatedly informing lawyers to get ready in all matters upto 2008. This appeal being of the year 2007 and being almost 10 years old, we therefore proceed to dispose the matter after hearing the department and perusal of records. 5. The main grounds of appeal preferred by appellant are as follows: 5.1 The impugned o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts, statements to the contrary are not acceptable in the face of such verified statutory records. 5.3 Statement of the Managing Director was recorded after more than 2 years from the date of visit of the officers and seizure of the records. 5.4 The learned Commissioner erred in passing the impugned order based only on the statements of certain disgruntled employees. The said employees have connived with the two Directors, who left the Company and have given false statements only with an intentio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h statutory records.. 5.6 Appellants have been following the procedures and maintaining the statutory records, filing the RT-12/ER-1 returns periodically which have been duly scrutinized. The appellant s unit has also been audited periodically by the department. 6. On behalf of department, learned AR Shri. Nagendra Rao submitted that the adjudicating authority in de-novo adjudication has made detailed analysis of all facts and circumstances and arrived at well reasoned order. He further contende .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ming the culpability of the appellant and the allegation that they had wrongly availed credit on goods which were found not issued or utilized in the manufacture of final products. 9. The main allegations are (i) shortage of inputs, for which duty of ₹ 93,992/- is demanded (ii) wrong availment of Cenvat credit without receiving inputs, for which ₹ 99,65,585/- is demanded. Central Excise Officers visited the factory on 24-04-2003 and on 03-06-2003. Statement of Managing Director and o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

200 10. The appellant then paid an amount of ₹ 93,992/- on 21-06-2003 towards Central Excise duty on such shortages. On scrutiny of records, it was alleged that appellants availed credit of ₹ 99,65,585/- on aluminium profiles, channels, wire rods, sheets during the period July 2000 to May 2003, but the same were not issued or utilized in manufacture of final goods as per records. 11. The evidence consists of the statements of the Managing Director as well as that of production superv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

zed for payment of duty on finished products. 12. The appellant has issued letter dated 08-11-2005 to the Commissioner in which they stated that there were two other directors who use to look after production and clearances; that these directors and employees played mischief and cheated him. The relevant portion of letter is reproduced as under: with reference to the above subject the undersigned as Managing director is used to look after General administration and Bank transactions. There were .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

we lost many valuable orders. Consequent to this, we also lost old outstanding payment to be received from our customers. Subsequently, the other directors left the company and the undersigned was made the scapegoat by the other directors 13. Tribunal had earlier remanded the matter on the contention of the appellant that the adjudicating authority was carried away by statements made by disgruntled employees who colluded with ex-directors and did not consider the enormous evidence placed by app .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vailment of Cenvat credit. For instance, as per entries shown in RG23A Part-I, 1107.2 Kgs( 8. 5. 03) and 1040.3Kgs( 15.5.03) of aluminium profiles wee shown to have been issue dot production where as log sheets on corresponding dates indicate issue 707 kgs of ingots on 8.5.03, nil on 15.5.03. Similarly, RG 23 A part-I shows the issue of 2011 Kgs(17.5.03), 1403 Kgs (18.4.03) and 2267 Kgs( 21.4.03) of aluminium profiles, whereas log sheets indicate issue of castings without mentioning weight on 17 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed that log sheets represent actual production of finished goods and consumption of raw material and that the entries in RG 23A Part-I were made on the basis of production shown in RG 1, arriving at consumption of raw material by adopting back calculation method. He also pointed out that the said variation was due to inclusion of quantities shown in certain invoices collected by their commercial Manager in respect of which material was not received. Keeping in view that none of these statements .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version