2014 (2) TMI 717

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....espect of unit No.1 of M/s.Jaquar & Co. Ltd. Similarly, penalty of Rs.10 lakhs has been imposed on Shri B.B. Duggal, Director of unit No.1 of M/s. Jaquar & Co. Ltd. 2. Similarly in respect of unit No.2 of M/s.Jaquar & Co. Ltd., cenvat credit of service tax amounting to Rs.33,82,116/- availed and utilized by them has been ordered to be recovered under Rule 14 of Cenvat Credit Rules read with section 11A/11AA of Central Excise Act, 1944 for the period 2007-08 to 2009-10. Duty amounting to Rs.2,42,45,525/- has also been confirmed alongwith interest and penalty of equivalent amount has also been imposed under Rule 15 of Cenvat Credit Rules read with section 11AC and Rule 25 of the Rules. A penalty of Rs.10 lakhs has been imposed on Shri Raje....

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....s on records, in respect unit No.2 are that the company was allowing rebate to dealers as per price on project supplies made to different buyers. These dealers were found to be availing these rebates by way of issuing 'debit notes' to the assessee and were also charging service tax on these debit notes. The assessee was availing credit of service tax on the strength of these debit notes, which were not valid documents prescribed under Rule 9 of Cenvat Credit Rules. It was also alleged that service tax paid on sales commission paid to the dealers was not admissible to the assessee as the said service provided by the dealer to the assessee was not an input service for manufacture of final product and it was post manufacturing activity. Sale c....

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....ces to the dealers/buyers where cash discount was shown in the invoices and duty paid on value arrived after taking 4% cash discount. However, full amount of value including 4% discount was charged from the buyer in the commercial invoices. During hearing they could not satisfy that in such situation where full value has been realized by them by way of commercial invoice and later records have been scored out by getting debit notes issued and resultantly paying no duty on the same. No reconciliation relating to differential value found in the trial balance including the value of the availed cash discount could not be proved by any evidence. It is explicitly clear that invoices issued under Rule 11 do not indicate the value of offered/availe....