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of <h1>Revenue appeal successful in dealer's scrap case due to discrepancies in records and invoices</h1> The Revenue successfully appealed against the findings of the Commissioner (Appeals) in a case involving a registered dealer's contravention of provisions ... Penalty - Cenvat/Modvat - Duty paying documents Issues:Challenge to findings of Commissioner (Appeals) by Revenue regarding contravention of provisions by a registered dealer in scrap of brass and copper.Analysis:The case involves a Revenue appeal challenging the findings of the Commissioner (Appeals) regarding a registered dealer's contravention of provisions applicable to them. The investigation revealed discrepancies in the dealer's RG 23D register, indicating a balance of brass/copper scrap that did not match the physical balance. The dealer was found to have issued invoices for duty paid materials without actually dispatching any physical stock to customers, enabling them to take Modvat credit. The transport documents were found to contain fictitious information, with vehicle registration numbers indicating vehicles incapable of transporting the mentioned materials.The Commissioner (Appeals) accepted the subsequent submission by the dealer regarding the correct vehicle numbers as an afterthought, noting that the department failed to verify the genuineness of the provided information. The Commissioner held that the department had not established non-receipt of inputs by the dealer. However, the Revenue argued that the delay in correcting the vehicle registration numbers after several years raised doubts about the authenticity of the dealer's claims, as any mistakes should have been rectified immediately and not after a significant period.Upon considering the submissions and hearing the arguments, it was held that the Commissioner (Appeals) erred in granting benefit to the dealer based on the corrected vehicle numbers. The judgment emphasized that the duty paying documents issued did not correspond to any physical dispatch of stock to customers' factories, indicating a violation by the dealer. Consequently, the department's appeal was allowed, and the order of the Commissioner (Appeals) was set aside.
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