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Ambica Syntex P. Ltd. Versus C.C.E & S. Tax, Surat

2017 (11) TMI 996 - CESTAT AHMEDABAD

CENVAT credit - fake invoices - non-existent dealers - whether the principles laid down by the Hon’ble Gujarat High Court in Prayag Raj Dying & Printing Mills Pvt. Ltd.'s case is applicable and the demands raised for extended period of limitation is bad in law? - extended period of limitation - Held that: - it was held the case of Prayag Raj Dyeing and Printing Mills Pvt. Ltd. that in the absence of any allegation that the appellants were parties to the fraud, the larger period of limitation can .....

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ppellant, since they failed to establish their claim existence of these dealers made before this Tribunal in the first round of litigation, for verification of which the matter was remanded. - The Appellant could not produce any cogent evidence to rebut the said findings of the ld. Commissioner (Appeals) before this Tribunal but reiterated the same submissions advanced before the ld. Commissioner (Appeals) - appeal dismissed - decided against appellant. - Central Excise Appeal No. 77 of 2012 .....

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of CENVAT credit on the invoices issued by the non-existent dealers, whereas the other Appeal i.e. E/11544/2013-SM relates to refund of ₹ 5,53,624/-, which was appropriated against the aforesaid confirmed demand of ₹ 12,31,622/-. 3. Ld. Chartered Accountant Shri Mukund Chauhan for the Appellants submits that the Appellant was issued with the show cause notice on 15.1.2008 alleging wrong availment of CENVAT credit of ₹ 12,31,622/- on the invoices issued by M/s Dhanlaxmi Textile, .....

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2.2009 remanded the matter to the adjudicating authority to examine the evidences in the form of affidavit filed by the Appellant establishing the existence of the aforesaid three suppliers/dealers of grey fabrics. Consequently, the matter was re-adjudicated by the adjudicating authority. However, he has confirmed the demand with interest and penalty. They filed Appeals before the ld. Commissioner (Appeals), who also rejected their Appeals. Hence, the present Appeals. 4. The ld. C.A. submits tha .....

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ona fidely, hence, there was no involvement in the fraudulent issuance of invoices. It is his contention that therefore, the credit cannot be denied to them. Further, he has submitted that this Tribunal has consistently followed the judgment of the Hon ble Gujarat High Court in Prayag Raj Dyeing & Printing Mills Pvt. Ltd. s case (supra). He further submits that applying the principles laid down in the aforesaid case, the impugned order deserves to be set aside. 5. Per contra, the ld. A.R. fo .....

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ers filed by them. It is his contention that the evidences placed by the Appellant before the authorities below have been minutely analysed and the ld. Commissioner (Appeals) has come to a categorical finding that the Appellant could not establish the case of existence of the dealers as claimed before this Tribunal in the earlier round of litigation. 6. Heard both sides and perused the records. The short issue to be answered in the present case is: whether the principles laid down by the Hon ble .....

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d of limitation cannot be applied in the absence of the fact that receiver of the invoice, is a party to the fraud. In the present case, from the beginning, the Appellant had claimed that the three dealers namely, M/s Dhanlaxmi Textile, M/s Tirupati Industries and M/s Sai Industries have been in existence and they have rightly availed the CENVAT credit consciously being fully aware of their existence. On the basis of the said averment before this Tribunal, for verification of the facts, this Tri .....

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on which the Appellant had availed CENVAT credit were not in existence. These facts were well within the knowledge of the Appellant, since they failed to establish their claim existence of these dealers made before this Tribunal in the first round of litigation, for verification of which the matter was remanded. 7. Ld. Commissioner (Appeals) after analyzing the copy of the letter dated 31.3.2005 addressed by M/s Dhanlaxmi Textile, M/s Tirupati Industries and M/s Sai Industries to Assistant Commi .....

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g fake invoices besides. He has also observed that these letters purportedly to have written by these three units and the rent deeds produced to establish their existence, are unreliable as signatures appended in both the documents are different. Also, taking note of the fact that the Appellants have categorically stated that they would submit the copies of bank statements to establish that the payments were made to the said three units by account payee cheques and sought time of 15 days but did .....

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