9911796707
TMI Blog2023 (2) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... t - Rajdhani Traders is a partnership firm having GSTIN (earlier ECC Number AAHFR5740 FED 002). The other appellant - Mr. Amit Rastogi is a partner of the firm. The case of Revenue is that these appellants have passed on inadmissible cenvat credit by issuing fake invoices without actual supply of goods. 3. As per records, the Appellant had purchased copper scrap from the registered manufacturer - M/s. Star Delta Exim Pvt. Ltd., Khushkhera, Alwar. Thereafter, the Appellant as registered dealer, supplied the copper scrap to M/s.Continental Engines on cenvatable invoices. The Revenue subsequently in the course of investigation at the premises of M/s. Star Delta Exim Pvt. Ltd., found that there was no plant and machinery, no electricity connec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e show cause notice nor appeared for personal hearing. Vide Order-in-Original dated 17th June, 2019, the proposed disallowance of cenvat credit was confirmed in the hands of M/s. Continental Engines along with penalty. Further penalty of Rs.56,017/- (equal to the cenvat credit disallowed) was imposed both on the appellant firm and it's partner, Mr. Amit Rastogi under Rule 25 of CER 2002. 5. Being aggrieved, these Appellant preferred appeal before the Commissioner (Appeals). The grounds taken before the Court below were that the show cause notice was not served upon them, nor they had received any notice of personal hearing. It is further contended that they had purchased copper scrap from M/s. Start Delta under proper invoices and payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aged to procure goods from any other source. In such a scenario, the cenvat credit cannot be denied. As admittedly, M/s. Continental Engines cannot manufacture their final products without actual receipt of raw materials or inputs. As per records, the goods were transported from the premises of M/s. Star Delta to the premises of the appellant - M/s. Rajdhani Traders, on GR issued by Rajasthan Golden Transport Services, Bhiwadi. The Appellant had made payments for the transport service in cash on payment vouchers. No investigation was conducted at the end of the driver/owner of the vehicle by the Department. 6. The ld. Commissioner observed that the case is booked not only on the basis of statements of other persons/third party, but booked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Delta closed its production on 25th March, 2013, but they have not surrendered its central excise registration with the Department. Further, statements of Shri Satendra Singh, Shri Yogesh Singh and Shri Pawan Gupta of M/s. Star Exim are general in nature, and have not specifically implicated these appellants. Revenue have erred in drawing adverse conclusions based on the statements without finding any fault or errors in the books of accounts and other manufacturing records maintained by the parties. Further, there is no allegation that M/s. Continental Engines had procured raw materials from alternate source for manufacture of the finished products. Further, payments for purchases have been made to M/s. Star Exim through banking channels ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elies on the impugned orders. He further states that penalties are imposed on the appellant firm as well as on Mr. Amit Rastogi for indulging in passing of fake credits. 11. Having considered the rival contentions, I find that the order of the Court below is vitiated as it has not decided the preliminary question or ground, that is non-receipt of the show cause notice by these appellants. Accordingly, these appeals are allowed by way of remand. The impugned order is set aside. The Adjudicating Authority is directed to record the service of show cause notice and thereafter, proceed to re-adjudicate the matter in accordance with law, after giving adequate opportunity of hearing to the appellants. These appeals are allowed by way of remand. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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