TaxTMI 
TaxTMI 
TaxTMI 
2011 (2) TMI 1169
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....e manufacture of finished products. Acting upon an intelligence that M/s. Sulabh Impex Incorporation, Sector-16, Rohini, Delhi, a registered dealer, issued fake cenvatable invoices to fraudulently enable various manufacturers including the Appellant, to avail of inadmissible cenvat credit, the officers of Central Excise, Jaipur-I paid a surprise visit to the factory premises of the appellant on 18-1-2006 and it was found that a total Cenvat credit of Rs. 1,96,782/- in respect of brass scrap received under four invoices issued by M/s. Sulabh Impex Corporation had been taken. The invoices were No. 207 dated 15-12-2004, No. 208 dated 18-12-2004, No. 209 dated 21-12-2004 and No. 210 dated 24-12-2004 for a total quantity of 14.93 M.T. These four....
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....h Section 11AC of Central Excise Act, 1944 and also under Rule 25(1) of Central Excise Rules, 2002; (c) imposition of penalty on Shri Sunil Dutt under Rule 26 of Central Excise Rules, 2002; (d) Imposition of penalty on M/s. Sulabh Impex Corporation under Rule 15 of the Cenvat Credit Rules, 2004. 1.2 The above show cause notice was adjudicated by Dy. Commissioner vide Order-in-Original No. 315/07-08 (DEM) dated 31-12-2007 by which - (a) Cenvat credit demand of Rs. 1,96,782/- was upheld against the Appellant Company along with interest and the amount already paid was appropriated against this demand; (b) penalty of Rs. 1,96,782/- was imposed on....
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....378492 dated 16-4-2004 covering the import of 21.008 M.T. of Mixed Brass Scrap, that though against this bill of entry, which is in name of the Sulabh Impex Corporation and is in respect of the import of 21.008 M.T., of Mixed Brass Scrap, a total of nine invoices for total quantity of 60 M.T. has been issued, it cannot be presumed that the four invoices, on the basis of which the appellants have taken the cenvat credit of Rs. 1,96,782/-, are fake without supply of any goods, that the supply of goods along with these invoices is clear from the transport company's GRs, Dharamkanta receipts and also the statement of the bank account of the appellant showing payment to M/s. Sulabh Impex, that no inquiry has been conducted by the department with....
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....ds had been supplied along with the invoices, that the statement of Shri Mittal stating that he is too poor to import any goods makes it very clear that no goods have been supplied by him and only the invoices had been issued, that the transport documents and the stamp of the sales tax authority stamped on the GR/Invoice did not in any way prove that the goods covered under the invoices, in question, had actually been supplied by M/s. Sulabh Impex Corporation, that Shri Mittal has not retracted his statement and hence, the same is admissible as evidence and that the fact that the bogus invoices had been issued in respect of the Bills of Entry No. 378492 dated 16-3-2004 is clear from the fact that for quantity of 21.008 M.T. of Mixed Brass S....
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....tement. There are four admissions made by Shri Mittal in his statement (1) invoices issued by him were mostly carrying fake bills of entry numbers and for this reasons only, he was not filing any return to the central excise department, (2) he had never supplied any goods along with invoices to any parties and the parties had taken only the invoices and had purchased the goods from others, (3) though he .was receiving the payment by cheque, he was returning the money after deducting his commission and (4) though he was having import export code number (IEC Code No.), he was too poor to make any import and there were other persons who were importing the scrap in his name, using his IEC Code No. and that he was not even aware as to where the ....