TaxTMI 
TaxTMI 
2016 (6) TMI 823
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....red from local dealers and mostly Karnataka Metal Corporation (KMC) and Agarvamshi Aluminium Ltd (AAL). Sometimes they purchase the inputs form BALCO/NALCO through KMC in which case, the goods are dispatched directly from BALCO/NALCO to appellants and the price is collected from appellants on invoices raised by KMC. The appellant's availed Cenvat credit facility on invoices issued for purchase of inputs. 2. The case of the department is that on specific intelligence, by DGCEI it was found that appellants were indulging in fraudulent availment of Cenvat credit. The allegation is that during the period January, 2003 to February, 2007, the appellant availed Cenvat credit on input invoices issued by M/s KMC/BALCO/NALCO/ALL, who issued ....
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....ed product/EC ingot. c) Wire rod received on four invoices was neither sent to job worker nor used in factory. d) In some cases KMC supplied aluminium sheets of required thickness only, but different thickness was shown in the invoices. That to manufacture final products, the appellants can use aluminium sheets of thickness either 0.9 to 1.05 mm. But the invoices show that appellants have received sheets of thickness less than 0.9 or more than 1.05 mm. That it indicates that such goods were never received in the factory. 3. A show cause notice was issued alleging that appellant had availed Cenvat credit fraudulently using the invoices issued by KMC and AAL without actual receipt of the goods. The notic....
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....department. The allegation is based on private records seized from third party-Prabhakar. The entries in these private note books do not tally with the invoices of the appellant and appellant has been merely implicated on the ground of entries made against one Mayur. Prabhakar has given contrary explanations with regard to the figures in the private note books. When goods were dispatched to appellant directly from BALCO/NALCO through KMC, the same were accompanied by invoices and delivery challan. Out of 471 delivery challans pertaining to the relevant period only 14DC were examined by the authority. Examination of all the DC would establish that goods were supplied and the correlation with job work challans co....
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....n the market as "Mayur Fans" There is no evidence to link the entries resumed with the appellant. 6. The raw material (inputs) are purchased by appellants from KMC , who are registered as first stage dealer, with the central excise department to pass on Cenvat credit. KMC procured the raw materials from AAL/BALCO/NALCO who have paid excise duty on the goods and the same was passed on to appellants by KMC. The allegation is that KMC has sold the goods in open market without issuing invoices, to those buyers who were not entitled to take credit. KMC then issued Cenvatable invoices to various manufacturers including the appellant without supply of goods. That such manufactures, including appellant made payment by che....
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....hat appellants have procured raw material from local market, the production of finished goods and cleared by paying duty cannot be explained. Even though it is alleged that the description of goods in job work challan varies from that of the invoices, the job workers to whom goods were given for job work were not examined. Even though the vehicle numbers were reflected in the invoices the department has not examined the drivers, who are material witnesses to prove that the goods were not supplied as per the invoices. It is also to be noted that appellant voluntarily submitted 471 delivery challans to substantiate his side that the goods were received in the factory. But department has relied upon 14 delivery challans only and failed to cons....