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TMI Blog2025 (4) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... s of fake invoices without the supply of material mentioned therein. The only ground on which the appellants are seeking the relief of remand of these cases to the adjudicating authority is that the Revenue has not afforded the opportunity of cross-examinations of the witnesses whose statements were relied upon by the Revenue against them. As the issue involved in all these appeals is common, therefore, I take up all the appeals together for discussion and decision. 2. Briefly stated facts of the present case are as under: 2.1 Appeal Nos. E/60653/2023 and E/60659/2023 2.1.1 During the period 2016-17, the appellant received invoices issued by M/s A-Mito Impex, Mandi Gobindgarh for an amount of Rs.39,39,900/- involving central excise duty of Rs.4,92,488/- which was found to be inadmissible to the appellant mainly on the ground that the manufacturer supplier namely M/s Shyam Metallic and Energy Limited Sambhalpur, Orissa has stated that they did not have any transaction with M/s A-Mito Impex during the year 2016-17. It was further investigated from ICC Barrier of Punjab and on scrutiny of import details of M/s A-Miito Impex for the year 2016-17, it was observed that during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Kryption and informed that Prakash is registered with Department of Commercial Taxes, Raipur and falls in their jurisdiction. On scrutinizing VAT returns/data of Kryption for F.Y. 2016-17 (RUD-3), it was observed that during the said period, Kryption had never imported any goods from states outside Punjab, as the value of import (inter-state purchase) of Kryption for F.Y. 2016-17 was found to be nil. Further, on analyzing the Central Excise dealer returns of Prakash, it was found that Prakash had filed only two Central Excise dealer returns covering the first two quarters of F.Y. 2016-17 (RUD-3A). On perusal of both these returns of Prakash, it was found that the dealer Prakash had filed nil returns during both the quarters. 2.2.2 It was found that even though both the dealer firms viz. Prakash and Kryption had never made any transactions viz. purchase and sale of excisable goods as discussed above, but Kryption was found to have passed on fraudulent cenvat credit to various furnace units of Punjab. It was revealed that Kryption had shown fraudulent purchase of excisable MS scrap either directly from two source manufacturing units based in Orissa namely Shyam Metalics and Ener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017, which had availed fraudulent cenvat credit of Rs.5,84,958/- against forged dealer's invoices issued by Krypton on the strength of fake invoices of aforesaid source manufacturers/dealers. 2.2.5 The above facts were brought to the knowledge of the Director of the appellant Sh. Anil Kumar Jindal during the statement recorded on 01.05.2018 and 23.06.2020 and he inter-alia admitted the fact that Krypton had issued fake cenvatable invoices to Shiva Castings Pvt Ltd and undertook to provide of DRC-03 for Rs.5,84,958/- availed by them on the strength of these invoices issued by Krypton. 2.2.6 Accordingly, Show Cause Notices were issued to the appellants demanding the above amount along with interest and penalty. Further, penalty against the Director was also proposed. The said Show Cause Notices were adjudicated wherein demand and penalty were confirmed. Both the appellants (Company and Director) filed appeals before the Commissioner (Appeals) and the Commissioner (Appeals) vide impugned orders rejected their appeals. Hence, the instant appeals. 2.3 Appeal No. E/60228/2023 2.3.1 During the period 2014-15, the appellant received invoices issued by M/s Blue Star Exports, L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hased goods and passed the cenvat credit to them. As we had sold the purchased goods on cash basis to small manufacturers in the market, the cash received on such sales is given back to these furnace units and adjust our finance. Whereas as per normal practice, the furnace units used to purchase non-excisable scrap from the kabaris from the open market and adjust the non-excisable scrap with the quantity shown on cenvatable invoices". He further admitted that the statement of Sh. Kesar Singh was correct and based on the facts. (d) In the third statement of Sh. Varinder Kumar recorded on 07.08.2016, he stated that "I admit that there are very very few ICC barrier entries under Import (IM) at the ICC barrier in respect of purchases made by my firm outside the state of Punjab. This ICC barrier data shows only those import (IM) entries of my firm against which the goods purchased by my firm M/s. Blue Star Exports, Ludhiana were actually received by us and entered Punjab border/barrier on respective date transported through given vehicle number. I further state that all other goods which were shown purchase from the parties of other states are not reflected in the ICC barrier entry da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that both set of these invoices were different as description of goods on his purchase invoices was shown as scrap (cutting/ defective (def.)] whereas manufacturer's invoice issued to Blue Star Exports, Ludhiana showed the goods as TMT/ TMT Saria, which are prime finished goods which cannot be used for melting, being economically totally unviable and that his firm has taken Cenvat credit on cuttings which is basically scrap. On being further asked as to whether his firm has availed Cenvat credit of Rs.5,90,423/- on strength of fake invoices of 110.925 MT of excisable goods valued at Rs.32,16,825/- issued by Blue Star Exports, Ludhiana without actual supply of any excisable goods as shown in the chart, he admitted that his firm has availed Cenvat credit of Rs.5,90,423/- on strength of invoices issued by Blue Star Exports, Ludhiana. After matching with our records, I admit that this chart is correctly prepared on the basis of our purchase invoices from M/s Blue Star Exports, Ludhiana; we have no manufactures‟ invoices available with us; Yes, I admit that we have taken the cenvat credit on cuttings which is basically scrap whereas the manufacturer's invoices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable in the instant case. The learned AR relies on the following decisions: a) Silicone Concepts International Pvt. Ltd. Vs Pr. Commr. of Cus., ICD, TKD (Import), New Delhi - 2019 (368) ELT 710 (Tri. Del.) b) Commr of CGST & CE, Howrah Vs Ashirwad Foundries Pvt. Ltd. - (2023) 4 Centax 265 (Cal.) c) M/s Unipearl Alloys Vs Commr of CGST & CE, Ludhiana - Final Order No. 60452/2024 dated 30.07.2024 (CESTAT Chandigarh) 5.2 The learned AR further submits that in the present case, the appellant had never made request before both the lower authorities seeking cross-examinations of the witnesses whose statements were relied upon by the Revenue. He also submits that in the present case, the Revenue has sufficient materials on record to establish that the Cenvat Credit availed by the appellant on the said invoices was not available to them and the appellant had never raised this argument before the adjudicating authority as well as the Commissioner (Appeals). The director of the appellant, being a co-noticee in the present case, had never retracted his admitted statement made by him. More so, the appellant during the argument, did not contest merit of the case. 5.3 The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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