Fake Purchase Invoices

[Siraj Shaikh]

There is a Corrugated Boxes Manufacturing Company.-called A-first Party. And there is a Ignots manufacturing-( called B)Company for which the Raw Material is MS Scrap. The Company B receives Fake Purchase Invoices from the Company A, i.e., receipt of Invoices and not receipt of MS Scrap. The Commodity involved is NON-CENVATABLE. What penal action can be taken on the Company A in the light of Excise Laws???????.....ALL THE TRANSACTIONS ARE FAKE.

AI Summary

Company A Faces Penalties for Fake Invoices Under Central Excise Laws; Possible Actions Include Fines, Imprisonment, and More. A corrugated box manufacturing company, referred to as Company A, is issuing fake purchase invoices for MS Scrap to an ingot manufacturing company, Company B, without delivering the actual material. The scrap is non-cenvatable, meaning it is not subject to excise duty. The discussion revolves around potential penalties for Company A under Central Excise Laws. Suggestions include issuing show cause notices, personal penalties, cancellation of registration, disallowance of CENVAT credit, interest imposition, and possible imprisonment for directors. The severity of penalties depends on the specifics of the case and the defense presented by the accused.