TaxTMI 
TaxTMI 
2015 (2) TMI 185
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....2004, passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as the 'CESTAT'). The appellant is engaged in the manufacture of copper wire and availed modvat/cenvat credit on duty paid inputs namely CC copper rod. During 2000-01, the appellant allegedly purchased CC copper rods from M/s R.K. Enterprises through its proprietor Shri R.K.Gupta. The premises of Shri R.K.Gupta were raided. Shri R.K. Gupta made a statement on 16.01.2001 that he had not delivered goods but had only facilitated parties in obtaining fraudulent modvat/cenvat credit. The detailed statement by Shri R.K.Gupta was preceded by recovery of bill books and rubber stamps of the department etc. The appellant, who was found t....
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....ered by the CESTAT and eventually dismissed on 29.04.2005. Counsel for the appellant submits that a perusal of the show cause notice, the order in original, the order passed by the appellate authority as well as the order passed by the CESTAT reveals that apart from the statement made by Shri R.K.Gupta, proprietor M/s R.K. Enterprises, no other incriminating material is referred to or available on record. The mere fact that Shri R.K.Gupta may have been guilty of enabling parties to avail fraudulent modvant/cenvat credit, would not raise an inference that the appellant was party to the misdeeds of Shri R.K.Gupta. The statement made by Shri R. K.Gupta does not implicate the appellant and in fact records that the transactions with the appella....
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....rises. The modus adopted by Shri R.K.Gupta was to issue invoices without any actual delivery of goods enabling the alleged consignor to obtain fraudulent modvat/cenvat credit. A search of the residential premises of Shri R.K.Gupta led to recovery of voluminous incriminating evidence in the shape of slips, fake GR books, numbering machines, blank cheques, stamps of various officers of the department. It also transpired that the alleged office in Faridabad was a single room taken on rent by Shri R.K.Gupta without any godown from where he could have supplied these goods. Mr. R.K.Gupta, however, did not implicate the appellant for availing fraudulent modvat/cenvat credit but as is apparent from his statement which has been placed on record, gav....
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....ffected. In order to give authenticity and credibility to each transaction I got printed the aforesaid mentioned G.R. Books in the name of various transport cos. I once again clarify that these companies are fictitious and are my creation and that do not exist." A perusal of the show cause notice and the order in original reveals that the adjudicating authority, while holding the appellant liable, has placed sole reliance upon the statement made by Shri R.K.Gupta that transport companies mentioned in GR books are fictitious, the description of goods in the invoices differs from purchase invoices and in some invoices the mode of transport is different from the purchase invoices, without referring to that part of the statement that exonerate....