2016 (9) TMI 924

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.... noted, provides for the imposition of penalty where a dealer or any other person as the case may be falsely or fraudulently claims an amount as input tax credit. The dispute itself emanates from certain purchases of iron and steel alleged to have been made by the revisionist during the Assessment Year 2007-08. It appears that during the course of survey, the department came to hold that M/s. Kamdhenu Traders, the selling dealers of the revisionist, was neither registered to engage in the business of sale of iron and steel nor had they produced any documentation of sale effected by it. On the basis of the said report of survey team, the Deputy Commissioner, issued a notice to the revisionist to show cause as to why penalty be not imposed u....

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....nown or have been aware of the fact that M/s. Kamdhenu Traders was not registered for the purposes of effecting sale of iron and sale. It also took notice of the fact that the tax invoices in question carried the TIN number and other particulars of the selling dealer. It was in view of the above state of the record, that the first appellate authority proceeded to annul the penalty which had been levied upon the revisionist. The appeal of the department has come to be allowed by the Tribunal which has held that in a survey undertaken on 6 August 2006, it was found that M/s. Kamdhenu Traders were not engaged in the business of sale of iron and steel. On this basis alone, the Tribunal proceeded to affirm the levy of penalty holding that the a....