TaxTMI 
TaxTMI 
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.
Fake Purchase Invoices
26 May 2012 
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Issuing fake excise invoices can trigger show cause notices, credit disallowance, penalties and possible prosecution.
Issuing fake purchase invoices for MS scrap without actual supply constitutes an excise offence and can trigger a show cause notice, disallowance of CENVAT credit, recovery of tax with interest, cancellation of registration, personal liability for directors and employees, monetary penalties to recoup revenue loss, and possible criminal prosecution; the exact measures depend on the severity of allegations and the assessee's defence, and supplies from unregistered dealers affect CENVAT eligibility. (AI Summary)
Issuing fake purchase invoices for MS scrap without actual supply constitutes an excise offence and can trigger a show cause notice, disallowance of CENVAT credit, recovery of tax with interest, cancellation of registration, personal liability for directors and employees, monetary penalties to recoup revenue loss, and possible criminal prosecution; the exact measures depend on the severity of allegations and the assessee's defence, and supplies from unregistered dealers affect CENVAT eligibility. (AI Summary)