TaxTMI 
TaxTMI 
2009 (1) TMI 661
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.... Bhandary Industrial Metals Pvt. Ltd., on the allegations and findings of clandestine removal. In addition, Modvat credit of Rs. 12,15,412/- stands denied to the said appellants on the allegations that the dealers, from whom they have received the goods, had availed the credit on the basis of duplicate copies of the invoices issued by the inputs manufacturer. In addition, penalties of Rs. 6,25,000/- stands imposed on other two appellants, who are registered dealers, under the provisions of Rule 173Q(1)(bbb). 2. We have heard Shri Anil Balani, ld. Advocate appearing for the appellants and Shri H.B. Negi, ld. SDR appearing for the revenue. 3. M/s. Bhandary Industrial Metals Pvt. Ltd., (hereinafter referred to as BIM) are engag....
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....Aditya Non-Ferrous and Ferrous (India) Pvt. Ltd., (hereinafter referred to as M/s. Aditya) and M/s. Sha Mulchand Navalram Jain (hereinafter referred to as M/s. Mulchand). The said credit was being availed on the basis of invoices being issued by the input manufacturers. The scrutiny of the records maintained by the dealers revealed that the credit was availed by them on the basis of the original copy of the invoices issued by the manufacturer of such inputs i.e., M/s. Bhandary Metallurgical Corporation, Mumbai (hereinafter referred to as BMC). Investigations were conducted and statements of various persons were recorded. 8. On the basis of above, proceedings were initiated against the appellants alleging clandestine manufacture and ....
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....tice, in the light of the statements of various persons, there is no other evidence on record corroborating the charges of clandestine removal. We note that it is not the revenue's case that the said register maintained by BDM's godown was in addition to the records showing separate receipt of raw materials received under the invoice. This was the ONLY register maintained at the said premises. Admittedly, BIM had cleared the goods to the tune of 176 MTs to the said five units on payment of duty. It is the appellant's contention that the goods reflected in the register maintained at BDM premises showing receipt of 180 MTs of brass rods and brass wires are the very same goods, which were cleared by BIM on payment of duty. We agree with the ld....
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....s impugned order lead us to observe that the adjudicating authority is passing the impugned order on the basis of probabilities and likelihood of clandestine clearance and not on the basis of any evidence establishing beyond doubt the factum of clandestine clearances. 13. We also note that the recipient of the raw materials, allegedly removed clandestinely by BIM, do not stands interrogated by the revenue during the course of investigation. If the register maintained by the godown of BDM was for and on behalf of the said five units, they were best persons to explain the entries in the said register. When pointed out to Commissioner, he rejects the above plea of the appellants on the ground that such ball point tip manufacturers were....
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....tine charges cannot be made on surmise and conjunctions and had to be based on evidences to establish the same. We accordingly, set aside the confirmation of demand of duty in respect of clandestine clearances and imposition of penalties upon the Bhandary Industrial Metals Pvt. Ltd. on this count. 15. We further note that Modvat credit stands denied to the said appellants on the ground that the registered dealers, who had issued the invoices, had availed the Modvat credit on the basis of the original copies of the manufacturers invoice instead of availing the same on the basis of duplicate copy of the transporter. At this stage, we find that there is no dispute about the correctness or otherwise of the invoices issued by the registe....