TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 1386
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....Central Excise Registration and availing Cenvat Credit facility under Cenvat Scheme. Department observed that the appellants have availed Cenvat Credit of Rs. 23,456/- on the strength of fake invoices issued by M/s. Kadri Texturisers, Surat on the fabric valued Rs. 2,84,588/-. The facts were investigated and Shri Ramesh B. Ranka, Director of the appellant company has confirmed about availing of Cenvat Credit on the fake invoices and re-accredited duty amount of Rs. 23,456/- through TR-6 Challan No. 02 dt. 10.03.2006 under protest. Show cause notice was served on the appellant for demand of duty and appropriation of duty payment and imposition of interest and penalty wit....
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....sp; Tejwal Dyestuff Industries Vs. Commissioner of C. Ex., Ahmedabad 2007 (216) E.L.T. 310 (Tri.-Ahmd.) (iv) S.K. Foils Ltd. Vs. Commissioner of Central Excise, Rohtak 2015 (315) E.L.T. 258 (Tri.-Del.). 4. On the other hand, Shri V.K. Shastri, Ld. Assistant Commissioner (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 5. On careful consideration of the facts of the case and submissions made by both the sides, I find that there is no dispute that the Cenvat Credit availed by the appellant on the invoices were found to be fake. The appellant is duty bound to take reasonable steps while taking the Cenvat Credit. ....
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....as Cenvat Credit is never available on the fake invoices accompanying any raw material. In fact, in this era of liberalization, the burden is on the part of the Appellants to confirm the genuineness of the documents before availing Cenvat Credit. I rely upon the ratio of order in the case of S.K. & Company (P) Ltd. vs. Commissioner of Central Excise, Rohtak 2006 (203) ELT 137 (Tri. Del) wherein it is held that the Appellants cannot extricate themselves from entanglement of events which question the very trust and responsibilities under Central Excise Rules. Therefore, the order of the Assistant Commissioner is upheld on this count. 08. As regards the limitation of time, the argument of Appellants that provision of Section llAC....
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....aid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice: Provided that where any duty of excise has not been levied or paid or has been short-levied or short- paid or erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, by such person or his agent, the provisions of this sub-section shall have effect, as if, for the words [one year], the words "five years" were substituted" On going through the above provisions, the recovery extending to the period of beyond one year in the present case....
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....abets in making such invoice; or (ii) any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made thereunder like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater.] On plain reading it is understood that if any person keeping in his possession the goods which are liable for confiscation is also liable for imposition of penalty under the provisions of this Rule. Further, if the person taking any ineligible benefit on any invoice used without the d....