TMI Blog2017 (7) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... the dealer M/s.S.k.Garg & Sons and thus they failed to discharge statutory burden under Rules 7(2), 7(4) and 9(5) of the CCR, 2002 - it is very clear that it was the case of fraudulent availment of credit on the basis of fake invoices. Appeal dismissed - decided against appellant. - E/2035/2011 - A/61232/2017-SM[BR] - Dated:- 7-7-2017 - Mr. Devender Singh, Member (Technical) For the Appellant : Shri Naveen Bindal, Advocate For the Respondent: Shri V.K. Trehan, AR ORDER Per: Devender Singh The brief facts of the case are that M/s.Bal Mukund Mohinder Kumar are registered for the manufacture of Shatter Part, Slotted Angel, MS Bars Section and Iron Tikki under Rule 9 of Central Excise Rules, 2002. During the period 2006-07 to 2007-08, the appellant had wrongly availed Cenvat credit of ₹ 31,05,356/- on the basis of invoices issued by the dealers, namely, M/s.S.K.Garg Sons (first stage dealers) and the second stage dealer M/s.Sukhdev Steel Rolling Mills. The Revenue conducted investigation and found that the office/godown premises for which registration was granted to M/s.S.K.Garg Sons was not in control/possession/ under rent by the dealer at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 1.16 (iii) (iv) of the adjudication order: (iii) Despite not having any office/godown to store the goods the Dealer had issued Cenvatable invoices to the Noticee after showing the storage of the goods. As mentioned above, the Dealer did not have any godown. Thus only the invoices were issued to Noticee without any physical transaction of the goods. (iv) The Noticee was informed by the officers that the Dealer was non-existent and fictitious and did not have any godown to store the goods and that after following the due process of law the registration of the Dealer had been cancelled retrospectively w.e.f.05.12.2003 by the Assistant Commissioner, Central Excise Division, Mandi Gobindgarh vide Order-in-Original No.04/CE/AC/MGG/08 dated 21.07.08, rendering the said transactions with them to be invalid. In this regard, the plea put forth by the legal heir of the Noticee that the said transactions were genuine at their end inasmuch as per their records payments have been made through cheques, are not convincing inasmuch as on one hand the Noticee had clearly agreed to the department's finding in the tentative investigation report dated 11.11.2008, that it was not pract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by the dealer are also invalid on which no Cenvat Credit is admissible. (ii) As per provisions of Rule 7(3) of CCR 2002 and Rule 9(4), Cenvat Credit on invoices issued by a dealer is allowed only if a dealer has maintained records indicating the facts that the inputs were supplied from stocks on which duty was paid. Since the dealer in this case has not produced complete Central Excise records before the investigating officers to show that the invoices issued were from the stock on which duty has been paid and therefore these invoices appears to have been issued by the dealer without receipt, dispatch and storage of duty paid goods. (iii) As per provisions of Rule 7(2) of CCR 2002 and rule 9(3) of CCR 2004, the manufacturer taking Cenvat Credit is required to take all reasonable steps to ensure that the goods in respect of which Cenvat Credit has been taken are goods on which appropriate duty of excise has been paid. In terms of these statutory provisions, the manufacturer is expected to satisfy himself about the identity and address of the supplier. In this case, the noticee had not taken any steps for conducting verification regarding identity and address o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defrauding Revenue which is anti-social activity adversely affecting public revenue. Such provisions are construed in the manner which curbs the mischief, promote their object, prevent their subtle evasion and foil their artful circumvention. Thus construed, the term fraud within the meaning of these penal provisions is wide enough to take in its fold any one or series of unlawful acts committed or omissions made. An act of fraud on Revenue is always viewed seriously. Fraud and collusion vitiate even the most solemn proceedings in any civilized system of jurisprudence. It is a concept descriptive of human conduct either by letter or words, which includes the other person or authority to take a definite determinative stand as a response to the conduct of the former either by words or letter. 8.1 Further, in the case of ICI India Limited vs. CC, Calcutta-2003 (151) ELT 336 (Tri.Del.), this Tribunal has held that fake documents is ab intio unlawful and void and action on such document cannot sanctify it or make it lawful. Such document cannot give rise to any right or benefit in law. Following the above ruling, the fake invoices issued by M/s.S.K.Garg were inherent nullity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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