2014 (6) TMI 451

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....ed on since the goods were actually not received. According to the Revenue, the appellant had placed orders with on M/s. Shakthi Enterprises based in Rajasthan for supply of copper rods who in turn claimed to have received the same from a company M/s. Matiz Metal Pvt. Ltd. located in Meghalaya. On verification of the records and investigations conducted, it was found that M/s. Matiz Metal Pvt. Ltd. had not manufactured nor did they supply. The conclusions are on the basis of documents verified with Sales Tax Department of Meghalaya, records of M/s. Matiz Metal Pvt. Ltd., statements of the proprietor of M/s. Shakthi enterprises and the fact that transporters were either to be non-existent or the vehicles were incapable of transporting the go....

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....d to be considered is whether penalty can be imposed under Rule 25 of CENVAT Credit Rules or not. First of all, I am not convinced that appellant is entitled transfer CENVAT credit taken without receipt of goods but only on the basis of invoices. This is in view of the fact that there are enough evidences available to show that M/s. Matiz Metal Pvt. Ltd. had not supplied the goods to M/s. Shakthi Enterprises and M/s. Shakthi Enterprises in turn had not supplied the goods to the appellant. The appellant had not chosen to seek cross-examination of both the parties even though their statements were relied upon. Moreover, the appellant has also not rebutted the evidences collected by the Revenue showing that vehicles were either non-existent or....