TaxTMI 
TaxTMI 
2015 (8) TMI 146
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.... confirmed demand by disallowing CENVAT credit of Rs. 17,96,732/- under Rule 14 of Cenvat Credit Rules, 2004, alongwith interest, against M/s. Dhakad Metal Corporation and also imposing equivalent amount of penalty on the appellant M/s. Dhakad Metal Corporation. A penalty of Rs. 8 Lakh was imposed upon a registered dealer M/s. Bhavna Metal Company under Rule 15 of Cenvat Credit Rules, 2004, for issuing cenvatable documents without receipt of goods from M/s. M/s. Prasun Ferro Alloys & Metal Casting Pvt. Limited. Against the said order passed by the adjudicating authority appellants filed appeal before the first appellate authority, which was upheld. 2. Shri Vinay S. Sejpal, (Advocate) and Shri S.J. Vyas, (Advocate) appeared on behalf of the....
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.... dealer, the documents alongwith goods were sent to M/s. Dhakad Metal Corporation and at the time of receipt of inputs, appellant M/s. Dhakad Metal Corporation were not aware that original manufacturer M/s. Prasun Ferro Alloys & Metal Casting Pvt. Limited had no facility to manufacture such goods. It was his case that extended period can not be invoked while demanding duty as his client was under bonafide belief that the inputs received by him covered by the documents issued by registered dealer. 2.1 It was further argued by the learned Advocate that as the registered dealer had received inputs as well as finished goods, therefore, extended period can not be invoked against his clients and recipient of goods who took credit on the basis of....
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....thority and the first appellate authority are not admissible as per Section 9D of the Central Excise Act, 1944. It was also his case that penalty upon M/s. Bhavna Metal Company can not be invoked under Rule 15 of the Cenvat Credit Rules, as the ingredients mentioned therein are not satisfied. It was his case that there is no evidence that his client M/s. Bhavna Metal Company has received inputs from any other source as no cash transaction has been brought into light by the investigation. 4. Learned Advocate appearing on behalf of M/s. Dhakad Metal Corporation also furnished Xerox copies of invoices under which inputs were received, which was available before the lower authorities. It was his case that vehicle numbers on the documents are m....
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....kad Metal Corporation is eligible to credit on the basis of documents which are claimed to have been received alongwith inputs issued by the registered dealer when original manufacturer M/s. Prasun Ferro Alloys & Metal Casting Pvt. Limited had no facility for manufacturing the goods on which ultimately credit was taken. There is no evidence on record that appellant M/s. Dhakad Metal Corporation did not receive the inputs alongwith cenvatable invoices issued by M/s. Bhavna Metal Company. It is also not on record whether M/s. Dhakad Metal Corporation was aware that the inputs received had been shown manufactured by M/s. Prasun Ferro Alloys & Metal Casting Pvt. Limited which had no facility for manufacturing of such inputs. It is beyond compre....
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....ereas the show cause notice was issued on 20.02.2009. As the extended period is not invokable, therefore, the demand is also time barred in addition to credit being admissible on merits. Accordingly appeal filed by M/s. Dhakad Metal Corporation is required to be allowed. 7. So far as imposition of penalty upon M/s. Bhavna Metal Company is concerned, it is observed that the same has been imposed under Rule 15 of Cenvat Credit Rules, 2004. The provisions of Rule 15 are reproduced below:- "Rule 15. Confiscation and penalty. - (1) if any person, takes or utilises CENVAT credit in respect of input or capital goods or input services, wrongly or in contravention of any of the provisions of these rules, then, all such goods shall be liable to con....