2013 (10) TMI 496

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....ons it was found that M/s. Bhagwati Trading Company, (as first stage dealer) were engaged in passing of inadmissible Cenvat Credit to various manufacturers/dealers by issuing invoices, without actually sending the duty paid goods shown as manufactured by M/s. Khemka Ispat Ltd. in the said invoices. Mr. K.P. Khemka, director of M/s. Khemka Ispat Ltd. And Shri Rupesh Bansal, Proprietor of M/s Bhagwati Trading Company (first stage dealer) admitted these facts in their statements recorded under Section 14 of the Central Excise Act, Total 15 invoices were issued by M/s Bhagwati Trading Company involving the Cenvat Credit of Rs. 7,12,136/- to M/s. Anurag Alloys & Die Cast (P) Ltd. and Jagdamba Metal Store was one of the second stage dealer who av....

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....dealer. He also submits that there is no allegation that Vehicle No, used for transportation of goods was actually not used by them. He submits that since they have received the material against all of those bills against which the Cenvat Credit was availed by them, there is no case for revenue to demand the Cenvat Credit. He submits that the appellants regularly submitted monthly returns and since there is no suppression of facts no penalty is imposable on them. 4. In respect of M/s Jagdamba Metal Store that is second stage dealer he submits that appellant nowhere admitted that invoices were issued by them without physical supply of goods. He submits that no specific rule has been invoked in the Show Cause Notice proposing the penalty a....

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.... by the Commissioner (Appeal). 7. M/s M/s Bhagwati Trading Company are first stage dealer and issue the cenvatable invoices to the manufactures of the goods and the second stage dealers. In the present case M/s Bhagwati Trading Company issued invoices to M/s. Anurag Alloys & Die Cast (P) Ltd. These invoices showed the goods manufactured by M/s. Khemka Ispat Ltd. Shri. K.P. Khemka director of M/s. Khemka Ispat Ltd. in his dated 24.02.2007 has admitted that no goods were supplied by him in respect of these invoices which means that the cenvatable invoices on which the Cenvat Credit has been taken by M/s Anurag Alloys & Die Cast (P) Ltd., and which referred the name of manufacturer of goods M/s. Khemka Ispat Ltd. were not the genuine invoic....