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M/s Flexituff International Ltd., Shri Umesh Dwivedi And Shri Mukesh Sangla Versus CCE, Indore And (Vice-Versa)

2017 (11) TMI 756 - CESTAT NEW DELHI

Duty Drawback - All Industry Rate - M/s FIL claimed the AIR at higher rate by claiming that the export goods were made without claiming such credit - Held that: - Revenue has not brought any other evidence to establish that the export goods were procured through other invoices on which credit was availed. Moreover the AIR was sanctioned and paid by Customs authority at the port of export. If Revenue is of the view that excess drawback has been paid, action for recovery has to be initiated by the .....

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nts. There is also no evidence found in the appellant’s documents which show their involvement in the matter - It is well settled position of law that demand cannot be made only on the basis of third party documents - credit remains allowed. - Appeal allowed - decided in favor of assessee. - Excise Appeal No.1763, 1828-1829 & 2141 of 2012 (DB) With E/CO/4378/2012 - A/56981-56984/2017-EX[DB] - Dated:- 6-10-2017 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) M .....

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ing under Chapter 39 of the schedule to Central Excise Tariff Act, 1985 (5 of 1986). They are also availing Cenvat Credit of the duty paid on inputs and capital goods under the provisions of Cenvat Credit Rules, 2004. The respondent have also been exporting the goods manufactured by them under claim for Duty Drawback. 2) In pursuance to the intelligence collected by the Directorate General of Central Excise Intelligence, Regional Unit, Indore that M/s. FIL have procured bogus invoices from M/s. .....

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digenously, without accountal and have merely used such invoices and Bills of Entry for manifesting procurement. This has been established by placing reliance on the following records and statements: (i) Ledgers of M/s. SOL and associates retrieved from the cashier, Mr. Kala s laptop, detail of bogus LRs issued by transporters, Depot records of M/s. SOL and associates and statements of key persons-all indicating that M/s. SOL and associates have issued bogus invoices to M/s. FIL without supplyin .....

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IL for manifesting transportation. (v) Two sets of inward registers, one manifesting receipts for bogus as well as genuine invoices and other one reflecting actual receipts only. 4) M/s. FIL have maintained a common Form IV account indicating receipt and consumption of inputs used in manufacture of goods cleared to DTA as well as those cleared for export. 5) M/s. FIL have availed credit on some of the bogus invoices and have used the others for the purpose of creating a separate account manifest .....

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oices from the aforementioned parties. The scrutiny reveals that out of 148 consignments verified as bogus on account of goods there under not found to have been transported to M/s. FIL, they have availed Cenvat credit on 39 invoices. The inputs purportedly procured under remaining 109 invoices/ Bills of entry, are shown to have been used in manufacture of export goods as per Registers for All Industry Rate of Duty Drawback [A/24 for the period 2006-07 and A/25 for the period 2007-081 maintained .....

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MT of inputs are verified as bogus on account of goods thereunder not found to have been transported to M/s. FIL. 8) Since M/s. FIL had wrongly availed the Cenvat Credit amounting to ₹ 38,41,487/- on the strength of the bogus invoices without receiving the goods and also availed excess drawback of ₹ 1,62,86,651/- a show cause notice dated 07.12.2007 was issued to M/s. Flexituff International Ltd., Pithampur by Additional Director General, DGCEI, Zonal Unit Ahmadabad proposing to rec .....

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- was dropped. 3. Against the impugned appeals have been filed by both sides which are being disposed by this common order. 4. With the above background, we heard Ms. Reena Khair and Shri Manish Saharan, Advocate as well as Shri R. K. Mishra, DR representing both the parties. We have also perused the record. 5. At the outset, we consider the appeal filed by Revenue against the dropping of the demand for excess drawback. M/s FIL have exported the goods manufactured by them and claimed drawback at .....

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for such claim by M/s. FTL for higher rate of AIR was a record maintained by them in which the details of invoices through which the input raw materials were claimed to have been procured for making the export goods were recorded. Further it was recorded that no credit was availed on those invoices. But most of these invoices were found to be bogus in which no duty was paid.In respect of those invoices wherever credit has been availed by M/s FIL, the impugned order has ordered recovery of credi .....

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r recovery of excess drawback. Revenue appeal on this ground is rejected. 7. Now we turn to the allegation that M/s FIL has availed fraudulently, the Cenvat credit on the basis of alleged bogus invoices issued by M/s SOL and its associate firms, but no goods accompanied such invoices. The Revenue s case has been made on the basis of the main evidences in the form of documents and data recovered from M/s SOL, particularly that maintained by Shri Kirti Kala, Cashier in his lap top. It stands origi .....

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