https://www.taxtmi.com/caselaws?id=53292 Under Rule 57G of the Central Excise Rules, Modvat credit on ship-breaking scrap was denied because the assessee could not prove physical receipt of inputs in the factory. Transport records were tested against RTO data, and the vehicle numbers in invoices were found to relate to motor cycles, auto-rickshaws, non-existing numbers, and other non-goods vehicles. RG 23A entries alone were held insufficient without gate registers or reliable freight/payment records. On that basis, wrongful availment of credit attracted extended-period recovery, interest under Section 11AB, and penalty under Section 11AC, with personal liability also noted for the Managing Director and invoice-issuing suppliers; the penalties were reduced on the facts. en-us Fri, 20 Aug 2004 00:00:00 +0530 Mon, 01 Jul 2024 18:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53292 Under Rule 57G of the Central Excise Rules, Modvat credit on ship-breaking scrap was denied because the assessee could not prove physical receipt of inputs in the factory. Transport records were tested against RTO data, and the vehicle numbers in invoices were found to relate to motor cycles, auto-rickshaws, non-existing numbers, and other non-goods vehicles. RG 23A entries alone were held insufficient without gate registers or reliable freight/payment records. On that basis, wrongful availment of credit attracted extended-period recovery, interest under Section 11AB, and penalty under Section 11AC, with personal liability also noted for the Managing Director and invoice-issuing suppliers; the penalties were reduced on the facts. Case-Laws Central Excise Fri, 20 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53292