2013 (12) TMI 871

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.... credits were taken did not relate to the goods that were received. The officers verified the purchase and sale documents of M/s. Leadsman Enterprises & M/s. Sri Amman Steels. On verification of the purchases, it was found that these two second stage dealers took credit based on invoices from M/s Sri Karpagam Steels, Coimbatore, showing sale of MS Wire Coils to them. Such wire coils were disposed of by the first stage dealer itself to other parties who were not interested in taking Cenvat credit. The first stage dealer issued invoices showing duty payment to these second stage dealers who in turn sold non-duty paid scrap showing duty payment based on such fraudulent credit. Therefore, Revenue initiated action for recovery of such credit in ....

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....were described as MS Wires in the invoice. He also stated that he did not notice that the purchase prices of the goods by the dealers, M/s. Sri Amman Steel and M/s. Leadsman Enterprises were mentioned as Rs. 26/- per kg in the invoices but the sale price of these dealers to them was in the range of Rs.16/- to Rs. 17/- per kg. 4. The statement of Shri Rajkumar, Proprietor of M/s. Leadsman Enterprises confirmed that he had not bought any goods from M/s. Karpagam Steel but only invoices were obtained. The invoice value of goods was paid by cheques using cash given by Mr. Murugappan of M/s. Sri Karpagam Steel. Further, he had also paid 50% to 70% of Cenvat credit involved in the transaction also to Mr. Murugappan. Shri G. Bhaskaran, Propriet....