9911796707
TMI Blog2018 (3) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Vinay Ansurkar for the appellant M/s Sofina Fashion admitted that they were not having any manufacturing premises and had obtained registration with the sole purpose of enabling to issue ARE-1 for the purpose of claiming rebate by others like M/s Sheetal Exports, M/s Karishma Overseas and M/s Krishna Exports and other three co-noticees. 2.1 It was admitted by Shri Kashinath Das that at the behest of Mr. Chandubhai Patel and others, they had obtained registration of the premise under Central Excise. He admitted that he was proprietor of the said unit and he had signed the application for registration. He had also given authorization letter to sign on his behalf of all excise documents in favour of Shri Jagdish Kumar Sarneshwaria at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was argued that they had withdrawn their rebate claims and nothing was planted to them. In these circumstances, imposition of penalties of Rs. 5 lakhs, Rs. 7 lakhs and Rs. 2 lakhs respectively are excessive. Learned Counsel pleaded for leniency. 3. Learned AR for the Revenue argued that there was no manufacturing activity whatsoever undertaken by M/s Sofina Fashion. No goods were manufactured or cleared from their premises and they issued invoices and ARE-1 documents showing utilization of CENVAT Credit. In these circumstances, learned AR argued that the demand of CENVAT Credit and imposition of penalty on Sofina Fashion is justified. He further submitted that the three exporters namely, M/s Karishma Overseas, M/s Krishna Exports & M/s Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CENVAT account by M/s Sofina Fashion at any stage. It is also admitted position that Sofina Fashion had filed a NIL return for September, 2004 to January, 2005. In these circumstances, the charge of availing or utilizing credit by M/s Sofina Fashion on the ground that they had generated fraudulent ARE-1 cannot be upheld. 4.2 The show-cause notice proposed imposition of penalty on M/s Sofina Fashion under Rule 15(2) of CENVAT Credit Rules, 2002 only. We find that in absence of any wrong availemnt or utilization of CENVAT Credit, penalty under Rule 15(2) of the CENVAT Credit Rules, 2002 cannot be imposed. 5. In view of the above, the appeal of M/s Sofina Fashion is allowed and the appeals of M/s Karishma Overseas, M/s Krishna Exports an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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