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TMI Blog2024 (2) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004 read with Section 11AA, 11AC & 11AB of the Central Excise Act, 1944 respectively against irregular availment of CENVAT Credit without actual receipt of excisable inputs by the Commissioner, Shillong as Commissioner, Navi Mumbai is assailed in this appeal by the Assessee/Appellant. 2. Facts of the case, in brief, is that Appellant is an importer and trader of sandalwood oil and essential oils who also had allegedly procured pure African sandalwood oil under 16 invoices having total quantity of 2221 kgs. by train or air transport mode from M/s. J.G. Spices Ltd., Guwahati. The DGCEI, Kolkata Zonal Unit investigated against M/s J.G. Spices Ltd. for evasion of Central Excise duty and observed that Notification No. 32/99-CE dated 08.07.199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing of the argument learned Counsel for the Appellant submitted that it had produced every detail of its transaction with M/s J.G. Spices Ltd. to the adjudicating authority including copies of transit pass issued by Forest Department Shillong, Railway, Transit receipt etc. but without giving due consideration to those documents evidencing transportation of goods from M/s J.G. Spices Ltd., Meghalaya to Navi Mumbai, such a demand was confirmed by the adjudicating authority on the sole ground that M/s J.G. Spices Ltd. had no capacity to manufacture such huge quantity of product in its existing machinery. In citing Judicial decisions of Hon'ble Jharkhand High Court passed in the case of Commissioner of Central Excise, East Singhbhum Vs. Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urse of business, for which the order passed by the Commissioner is palpably wrong and it is required to be set aside. 4. In response to such submissions, learned AR for the Respondent-Department submitted that taking advantage of the beneficial notification meant for the North Eastern region, the goods were technically imported/taken to Meghalaya to M/s J.G. Spices Ltd. firm whereby additional duty of Excise was returned back to M/s J.G. Spices Ltd. and after those were being shown as sold through issue of invoices, the purchasers were being taking the CENVAT Credits of the duty paid through those invoices but it was an organized crime done by group of people in a planned manner to syphon public money into their account and such evil desi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l intact but when broke open and verified was found to be plain water only. More importantly in the containers that were being carried by Air India Cargo having AWB numbers were said to be containing sandalwood oil (finished products) did not appear sandalwood oil at all by its appearance and odour, showing those to be of genuine purchases made through import. M/s J.G. Spices Ltd. was availing the benefit of exemption notification. Interestingly enough, during investigation 35 numbers of rubber stamps of Government Officials and Government Offices like Sales Tax Department of Government of Meghalaya, Assam and West Bengal were recovered from the office premises of M/s J.G. Spices Ltd. alongwith blank letter pads, blank invoice books and rub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re clearance but the cap of the drums were only put back without re-sealing. While not denying the findings of Forensic Science Assam report, he stated in his statement that once goods were dispatched from there end, they have no control on it after it reached the destination but the same statement is contradictory to the investigation since, essential oils like sandalwood oil and patchuli oils seized in the premises of M/s. J.G. Spices Ltd. were all in sealed conditions. This being so, we have got no hesitation to come to the conclusion that goods were imported in sealed condition, taken to M/s. J.G. Spices Ltd., Meghalaya and kept therein also in sealed conditions and again returned back to different traders including the Appellant in sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . J.G. Spices Ltd. premises and Appellant's own admission in sufficient indication that imported sandalwood oil and Patchuli oils were of pure variety and needed no further development through any manufacturing process. This being the facts on record and having regard to the fact that the container that is being coming to the Appellant through in land purchases invoices was not containing sandalwood oil, the judgments relied upon by the Learned Counsel for the Appellant that non-payment of duty at the supplier's end would not disentitled the Appellant to avail the credit, would not apply to the present fact of the case. Having said so we are of the firm opinion that the Appellant had not purchased sandalwood oil from M/s J.G. Spices Ltd. th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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