TaxTMI 
TaxTMI 
2008 (2) TMI 124
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.... reversal of the modvat credit. The case of the Revenue is that the respondents had availed modvat / cenvat credit amounting to Rs. 7,94,006/- fraudulently on the strength of invoices issued by Karan and Co. without actually receiving the goods. It may be mentioned here that notice was issued to Karan and Co. too as well as many others who had also availed modvat /cenvat credit on the strength of the invoices issued by Karan and Co. The action was taken in the light of the report of the Director General of Central Excise Intelligence (DGCEI) on the ground that there were no entries of consignment in the records maintained by Karan and Co. for the purpose of sales tax, being ST XXVI-B Register,....
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....o occasion for the respondents to claim credit on the basis of such invoices. It was submitted that in cases of clandestine transactions which take place under veil of secrecy, there cannot be direct evidence to prove such transactions and non-acceptance of the case of the Revenue on the ground that there was not enough evidence to substantiate the allegation was not correct. It was submitted that the Department having produced the records of the Excise and Taxation Department maintained for sales tax purposes of the Government of Himachal Pradesh, the burden which initially lay on the Department got shifted to the assessee- respondent to prove that the goods in question not only entered the State of Himachal Pradesh but was als....
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.... only ST XXVI-B register wherein single entry was made. 6. The Sales Tax Department vide its letter dated 20.5.2002 - on request of the Central Excise Department - submitted details of consignments by M/s. Karan and Co. which had crossed Parvanoo tax barrier. The list contained particulars viz. Serial Numbers, ST-XXVI-A Numbers, name of the Consignors, vehicle numbers, bill numbers and dates, amounts and GR numbers. The adjudicating authority found on examination of the records that except in 16 cases, the details furnished by the Sales Tax Department matched with the particulars mentioned in ST XXVI-A Forms submitted by Karan and Co. In order to verify the genuineness of the remaining forms further qu....
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....ed goods from the factory on payment of duty payment though account payee cheques to the consignor of inputs i.e. M/s. Karan & Co. and realization / encashing of those cheques in their accounts, and thus affirmed the order of the adjudicating officer. 8. I find that the impugned order of the adjudicating authority is based on records and backed up by sound reasoning. It is true that in cases of clandestine transactions it would be futile to expect any direct evidence and therefore, it may be legitimate to draw inferences from the attending facts and circumstances. In such a case, therefore, the Department would be justified in relying on the records of the Excise and Taxation Department of the State of Himac....