TaxTMI 
TaxTMI 
2016 (9) TMI 932
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....inum ingots and scrap as their principal raw material but availed Cenvat credit on aluminum profiles, channels, wire rods and sheets purchased from M/s Karnataka Metal Co(KMC) and M/s Adarsh Aluminium Corporation(AAC). As per records, the cost of raw material used was more than the cost of finished goods. Subsequently, the officers recovered certain documents from KMC and AAC under panchanamas dated 28-05-2003. The officers also searched the factory premises of the assessees on 03-06-2003 and noticed certain discrepancies with regard to stock position. 1.3 On scrutiny of records, it was observed that the assessees availed an amount of Rs. 99,65,585/- as MODVAT/Cenvat credit on the goods like aluminum profiles, channels, wire rods, sheets....
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....lf. None the less, in the interest of justice further chance was given and the case was adjourned to 11-07-2016 as last chance and notice was again issued to the appellant. On 11-07-2016 an application was filed by counsel for appellant seeking adjournment on the ground that, As I am indisposed and advised rest for a week , which in our opinion is not a satisfactory ground for adjournment, especially when this bench has been repeatedly informing lawyers to get ready in all matters upto 2008. This appeal being of the year 2007 and being almost 10 years old, we therefore proceed to dispose the matter after hearing the department and perusal of records. 5. The main grounds of appeal preferred by appellant are as follows: 5.1 The im....
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.... tally or match, with statutory records.. 5.6 Appellants have been following the procedures and maintaining the statutory records, filing the RT-12/ER-1 returns periodically which have been duly scrutinized. The appellant s unit has also been audited periodically by the department. 6. On behalf of department, learned AR Shri. Nagendra Rao submitted that the adjudicating authority in de-novo adjudication has made detailed analysis of all facts and circumstances and arrived at well reasoned order. He further contended that in both rounds of adjudication, including one based on Tribunal order, the adjudicating authorities have found that the appellant had actually committed the contraventions alleged in the show cause notice. In fact bot....
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.... was alleged that appellants availed credit of Rs. 99,65,585/- on aluminium profiles, channels, wire rods, sheets during the period July 2000 to May 2003, but the same were not issued or utilized in manufacture of final goods as per records. 11. The evidence consists of the statements of the Managing Director as well as that of production supervisor (Shri Challa Yelamanda Reddy, Shri V.Balasubramanya Sharma, Shri V.Narasimulu), Commercial Manager (Shri.A.Venugopala Rao) and General Manager (Shri P.P.Punnaiah). All the above employees have deposed that the appellant did not receive any aluminium extrusions, sections, pipes, tubes, sheets, coils etc. and that these have not been used in production. But the statutory records show that....
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....ments made by disgruntled employees who colluded with ex-directors and did not consider the enormous evidence placed by appellant in the form of extracts of Daily Production Log sheets, RG-23A, Part II, RG-I, daily Stock register. In the second round of litigation, it is seen that adjudicating authority has well considered these documents. The relevant portion of impugned order is reproduced below for better understanding of the point. "Further, a bare perusal of entries made in RG23A Part I vis-`-vis log sheets amply demonstrates that there are manipulated paper transactions shown with a sole intention of fraudulent availment of Cenvat credit. For instance, as per entries shown in RG23A Part-I, 1107.2 Kgs( 8. 5. 03) and 1040.3Kgs(....
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....ries shown in RG 23 A part-I depicting the consumption of disputed inputs were fictitious ones and the inputs were not physically consumed " 14. It is seen that the investigations have conclusively proved that the appellants received aluminium scrap in the form of broken scrap, end pieces of sections, wastage of sheet cutting etc; from local dealers and bus body manufacturers, however, the appellants did not actually receive new aluminium pipes, sheets tubes, coils etc. It is also evidenced that the said material received under cenvatable invoices were never used in manufacture of finished goods. The denovo adjudicating authority has made an in depth analysis concerning shortages noticed of aluminium extrusion hollow profiles and alumini....