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2016 (10) TMI 611 - CESTAT CHANDIGARH

2016 (10) TMI 611 - CESTAT CHANDIGARH - TMI - Denial of CENVAT credit - demand of duty with interest - imposition of penalties - dealer found to be non-existent at the time of investigation - Held that: - the cenvat credit cannot be denied to the assessee merely, on the ground that at the time of investigation, the dealer was non-existent. In fact when the goods were procured by the assessee, the dealer was registered with the department. - CENVAT credit on the basis of investigation conduct .....

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onfirmed against appellants. 2. The brief facts of the case are that appellants are engaged in the manufacture of Iron & Steel Product. The appellants availed the cenvat credit on the inputs received from one of the dealer M/s Sidh Balak Enterprises. An investigation was conducted against the dealer M/s Sidh Balak Enterprises, supplier of inputs, which was found to be non-existent at the time of investigation and the dealer was not having storage capacity during that time. On the basis of in .....

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half of the appellant submits that there was no investigation nor any documents were resumed merely on the basis of the statement, investigation was conducted at the end of the supplier. Cenvat credit has been denied to the appellant, which is impermissible in law. He further submits that in several cases, where invoices were issued by M/s Sidh Balak Enterprises and no investigation was conducted at the end of the assessee/manufacturer of wire, this Tribunal has formed a view that cenvat credit .....

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the impugned orders. 5. Heard the parties and considered the submissions. 6. I gone through the submissions made by both the sides. I find that in the case of M/s Dhiman Iron and Steel Industries Pvt Ltd vide Final Order No. 60003-60004/2016 dated 28.04.2016, this Tribunal has observed as under: 7. On careful consideration of the facts of the case, I find that the facts of this case are similar to the case of M/s Accurate Auto Product Ltd. (Supra) wherein the facts are as under: Para 2. The fac .....

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investigation it was also revealed that Sh. Sachin Aggravanshi was managing his affairs in the name of M/s Sidh Balak Enterprises who was registered as first stage dealer but they are not having any office or godown to store the goods. From the investigation, it was also revealed that M/s Sidh Balak Enterprises procured goods from manufacturer supplier and after gap of one week or so they are issuing cenvitable invoices to the buyers of the goods. From these set of facts, it was revealed that M .....

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td. against the invoices issued by M/s Sidh Balak Enterprises. The show cause notice was adjudicated. Cenvat Credit was denied confirming the allegation that goods were not moved only invoices were issued Consequently, demand of duty was confirmed against M/s Accurate Auto Product Pvt. Ltd. along with interest and equivalent amount of penalty was also imposed and equivalent amount of penalty was also imposed on M/s Jitan Steel Industries. Aggrieved from the said facts appellants are before me. 8 .....

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, the burden of proof that the goods had actually been received by the appellant company would shift to them. The appellant company in this regard has not produced any evidence. In view of this, I hold that the transactions of the appellant company with M/s Sidh Balak Enterprises are bogus and as such no goods had been received by them and hence the Cenvat Credit has been rightly denied " 7. The facts of this case are not applicable to the facts of the case in hand as in that case there is .....

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icate of the dealer was rejected on the premise that neither the appellant is having any godown or office. Therefore, issue of entitlement of cenvat credit was not there. Further, I find that the case laws relied by the appellant are similar to the facts of the case in hand as in that case this Tribunal has held that when no enquiry has been conducted at the end of the transporter to reveal the truth whether the transporter has transported the goods to the premises bf the appellants against the .....

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