https://www.taxtmi.com/caselaws?id=248550 Fraudulent availment of input credit on Naphtha is disallowable where purported final-product clearances are fabricated, buyers are non-existent or deny purchases, banking entries are manipulated, and inputs are diverted. Duty paid on bogus final-product invoices does not reverse or preserve credit when the underlying sales and clearances are fictitious. Section 38A of the Central Excise Act permits continuation of pending proceedings under Rule 57I despite replacement of the Modvat regime by Cenvat rules. Fabricated buyer records, transport documents, and banking trails support invocation of the extended limitation period for suppression and fraud. Penalties remain sustainable in principle, subject to recomputation of duty and verification of remaining clearances. en-us Tue, 13 May 2014 00:00:00 +0530 Sat, 10 Jan 2015 10:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=248550 Fraudulent availment of input credit on Naphtha is disallowable where purported final-product clearances are fabricated, buyers are non-existent or deny purchases, banking entries are manipulated, and inputs are diverted. Duty paid on bogus final-product invoices does not reverse or preserve credit when the underlying sales and clearances are fictitious. Section 38A of the Central Excise Act permits continuation of pending proceedings under Rule 57I despite replacement of the Modvat regime by Cenvat rules. Fabricated buyer records, transport documents, and banking trails support invocation of the extended limitation period for suppression and fraud. Penalties remain sustainable in principle, subject to recomputation of duty and verification of remaining clearances. Case-Laws Central Excise Tue, 13 May 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=248550