2017 (5) TMI 755

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..... i) was engaged in the manufacture of Textile madeups. ii) Department received intelligence that M/s Akai was lying closed/ inoperative but showing export of huge quantity of textile madeups and availing rebate claim on the basis of fake invoices prepared to pass of the CENVAT Credit without supplying the goods. iii) The Central Excise officers of Surat-II Commissionerate made search at the premises of M/s Akai and found that there was neither any raw material/finished goods nor any documents and there was no manufacturing activity or even the electricity connection in the said premises. iv) The Central Excise officers recorded the statements of various persons and issued Show Cause Notice to M/s Akai, M/s Jagdamba, the appellant herei .....

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..... along with others also charges that the appellant M/s Jagdamba entered into fraudulent paper transactions to facilitate M/s Akai to take wrong CENVAT Credit amounting to Rs. 51,70,589/- during the period 01.02.2005 to 23.10.2005, making them liable for penalty under Rule 26 of Central Excise Rules, 2002. vi) The Show Cause Notice was adjudicated by the impugned order dt.31.10.2004 by the Commissioner, Surat-II, who inter alia, imposed penalty of Rs. 10 lakhs on the appellant M/s Jagdmba. vii) Hence this appeal by the appellant before the Tribunal. 3. None present for the appellant. The appellant has appeared before the Tribunal for hearing once only i.e. on 02.05.2008 and thereafter never appeared, though vide Order No.S/944/WZB/AHD/08 .....

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..... the appellant M/s Jagdamba making them liable for penalty under the provisions of Rule 26 of Central Excise Rules 2002. The appellant, therefore, has been found to be an important facilitator for M/s Akai, the main noticee, for fraudulent and wrong availment of CENVAT Credit when M/s Jagdamba entered into only paper transactions with M/s Akai without physically delivering the goods to M/s Akai. Consequently, M/s Jagdamba is liable for penalty under Rule 26 of Central Excise Rules 2002. When it is so, then the penalty of Rs. 10 lakhs has rightly been imposed on the appellant M/s Jagdamba by the impugned order. 4.2 Consequently, the impugned order in the case of the appellant is hereby sustained along with the reasons given therein and the a .....

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