2015 (10) TMI 157

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....ed; that during the impugned period, they will do paper transaction by issuing invoice to each other for sale and purchase of the goods without physically supplying the goods. Thereafter, the statement of Shri K.P. Kher was also recorded who supported the statement of Shri Rupesh Bansal. Thereafter, an investigation was conducted at the premises of Sh. Amarjeet Singh Malik, Malik Sons and Cosmos Steel a second stage dealer and statement was recorded who, inter-alia, in his statement stated that they have received goods from the appellant against the particular invoices issued by the appellant to them and taken CENVAT Credit on the basis of those invoices, wherein the manufacturing supplier name is as Khemka Ispat Limited. The goods were sol....

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....the manufacturing supplier as Khemka Ispat Ltd. In these circumstances, without recording the statement of the appellant, penalty on the appellant is not imposable. 5. He further submits that in similar set of investigation in the case of Super Trading Company Vs. Commissioner of Central Excise, Delhi-IV reported in 2014 (299) ELT 75 (Tri-Delhi)  set aside the penalty on the first stage dealer and second stage dealer also where no statement of second stage dealer was recorded. Further, the same view has been taken by the Tribunal in the case of JSBL Limited, Unit-II wherein also penalty has been set aside. 6. On the other hand, ld. AR opposes the contention of the Id. counsel and submits that the manufacturing supplier M/s. Khemka Is....