2016 (4) TMI 1159

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....t the impugned order. 3.  The facts of the case are that the assessee is engaged in manufacture of Iron & Steel Product etc. The assessee availed the cenvat credit on the inputs received from the dealer, M/s Sidh Balak Enterprises. An investigation was conducted against the dealer/supplier of the goods who was found to be non-existent at the time of the investigation and the dealer was not having any storage capacity. In that circumstance, the proceedings were initiated against the assessee for denial of cenvat credit on the invoices received from the M/s Sidh Balak Enterprises on the premised that there was a paper transaction and the goods were not actually moved to the assessee. The matter was adjudicated, the adjudicating authorit....

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...., on the ground that on later stage, the dealer was non-existent, the cenvat credit cannot be denied. It is further submitted that no investigation was conducted at the end of the manufacturer supplier of the goods/transporter. In that circumstances, the cenvat credit cannot be denied. It is also submitted that the statement of the appellant was recorded, wherein the appellant has admitted that they have received the goods and the same has been utilised in manufacture of final product. The payments were made through a/c payee by cheques and goods have been duly entered in statutory records. In that circumstances, the cenvat credit cannot be denied. It is further submitted that in similar investigation in the case of M/s Accurate Auto Produc....

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....him to M/s Jitan Steel Industries. Sh. Sachin Aggravanshi was not available and no document were produced before the authorities but statement of the appellants was recorded wherein appellants has categorically stated that they have received the good and taken the cenvat credit thereon and payment thereon has been made through account payee cheque. From the investigation it was also revealed that Sh. Sachin Aggravanshi was managing his affairs in the name of M/s Sidh Balak Enterprises who was registered as first stage dealer but they are not having any office or godown to store the goods. From the investigation, it was also revealed that M/s Sidh Balak Enterprises procured goods from manufacturer supplier and after gap of one week or so the....

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....o office or godwon, it is difficult to believe as to how and when the goods had been stored. In view of this, the burden of proof that the goods had actually been received by the appellant company would shift to them. The appellant company in this regard has not produced any evidence. In view of this, I hold that the transactions of the appellant company with M/s Sidh Balak Enterprises are bogus and as such no goods had been received by them and hence the Cenvat Credit has been rightly denied. " 7. The facts of this case are not applicable to the facts of the case in hand as in that case there is a finding of this Tribunal as appellant was not having storage capacity as M/s Neelkanth Steel & Agro Industries (Supra) who has availed cenvat c....