2005 (4) TMI 489

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....p;2.Briefly, the facts are like this - M/s. EPPL the respondents herein, during the period 4/94 to 11/94 received inputs from M/s. Britacel Exports Pvt. Ltd., registered dealers on which they have taken Modvat credit. It may be mentioned that M/s. EPPL are job workers of M/s. BSPL. The allegation is that the respondents (M/s. EPPL) had made false entries in their RG 23A Pt. I in respect of inputs received from M/s. BSPL and registered dealers. It appears that the respondents first received the inputs, made use of them in the manufacture of final products but received the invoices covering the goods later. In order to cover up this situation the respondents falsified their entries in such a way to make an impression that the inputs themselve....

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....hich stipulates that credit is deniable if improper accounts, are maintained in respect of inputs; the fact that the inputs were received first and invoices later makes it difficult to correlate the invoices with the inputs; that the Commissioner erred in holding that the respondents did not suppress any material facts because they filed RT 12 returns regularly; the filing of RT 12 returns has got nothing to do with wrong availment of credit and that larger period is invocable in the present case. 4.Heard both sides.  5.The prayer of the Revenue before the Tribunal is that the Commissioner erred in dropping the demand for Rs. 84,80,407/- and in dropping the penalty on the dealer who supplied the inputs. 6.We observe that confi....