TMI Blog2017 (9) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... e Member Bench decision. upheld the order and disallowed the CENVAT Credit on the basis of dealer's invoices which were accompanied by consignment notes in which vehicle numbers were found to be incapable of transporting goods - recovery of CENVAT Credit along with interest as well as penalty of ₹ 1,16,03,673/- imposed against MCU, are upheld. Since penalty has been imposed on M/s. Bhagwati Steel Centre, we feel no separate penalty is required to be imposed on Shri Bimal Kr. Kheria, partner of M/s Bhagwati Steel Centre. Appeal allowed - decided partly in favor of appellant. - Excise Appeals Nos. 423-425/2008, 453 & 454/2008 - Order No. F/O 77411-415/2017 - Dated:- 21-9-2017 - Satish Chandra, President And Shri V. Padmanabhan, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 3. With the above background, we heard Shri B.N. Chattopadhyay, Consultant appeared for BSC (other appellants not represented) and Shri D. Haldar, A.C. (A.R) for the Revenue. After hearing both sides and on examination of appeal record, we note that the allegations of irregular CENVAT Credit has been confirmed against the manufacturer (MCU) on the basis of the following main evidences: (a) M/s. Motihari Chini Udyog (MCU in short), manufactured Excisable goods sugar and molasses, against whom intelligence was gathered by DGCEI that they have misused Cenvat Credit facility as they procured invoices, without actually receiving any duty paid goods from registered dealer M/s. Bhagwati Steel Centre (BSC in short). The factory premises o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 BG 10432691 dated 24.11.2000 issued by MCU to BSC, against all of them date of supply was indicated as 29.06.2001. (g) Examination of Bill filed showing purchase of goods by MCU indicated that whereas in some cases the bills were attached with consignment notes of transporters, weighment slips etc. and such consignment notes contained the details of Sales Tax Road permit, details of purchase order no. etc. However no such details like weighment slip, Sales Tax Road Permit No. and purchase order no. were entered in the bills of BSC or consignment notes of UFC, Thus it was alleged that UFC issued fake consignment notes and BSC issued fake invoices without actually selling any goods in those cases. (h) The details of vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xes Authorities in Motihari, Bihar, the Department revealed that no form was issued for movement of consignments covered in the show cause notice as required in the Bihar Sales Tax Rules. This reveals that the consignments moved only on paper. 4) The findings of the Adjudicating Authority has been challenged by the various appellants mainly on the ground that by claiming that the material covered by the invoices issued by BSC as well as M/s. Steel Centre were received by MCU. Further, the payments for the same had been made by MCU by Account Payee Cheque or through RTGS. It has also been argued that some of the registration numbers of the vehicles indicated in the consignment notes might have been recorded by mistake. 5) It has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of the above evidences, it is clearly established that no goods accompanied invoices by those two dealers M/s BSC and Steel Centre. Consequently, the CENVAT Credit availed by MCU on the basis of such invoices are irregular and needs to be disallowed. 9) We find that a similar issue of fraudulent CENVAT Credit availment on the invoices issued by first stage dealers came up before the Mumbai Bench of the Tribunal in the case of Bhagwati Steel Casts Ltd. Vs. CCE, Nasik [2013 (293) ELT 417 (Tri-Mumbai) in which Tribunal, vide three Member Bench decision. upheld the order and disallowed the CENVAT Credit on the basis of dealer s invoices which were accompanied by consignment notes in which vehicle numbers were found to be incapable of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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