TaxTMI 
TaxTMI 
2017 (4) TMI 838
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....thering intelligence that KMC was indulging in issuing fraudulent cenvatable invoices without actual supply of raw materials to their customers, the DGCEI, Hyderabad conducted search in the office premises of KMC and the residential premises of Sh. V. Prabhakar, Manager/employee of KMC and recovered documents. KMC were dealers of M.s Agarvanshi Aluminium Ltd., M/s Pennar Aluminium Company (PALCO) and BALCO. The records recovered from the residential premises of Sh. V. Prabhakar showed certain entries which indicated supply of goods to appellant. Astatement of the Managing Director of the appellant company was recorded. A show cause notice was issued to the appellant alleging fraudulent availment of CENVAT Credit to the tune of Rs. 4,47,674/....
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....ansactions which are recorded in the RG-23 register. All the statutory records were maintained properly by the appellant and department does not allege any discrepancy with regard to the statutory records. So also, the details of the Vehicle No, the LR No. are found entered in the records of the appellant. He submitted that no investigation is done with regard to the vehicle nos. noted in the records and at the end of these transporters. That on being asked about the details of the veracity of transactions during the period 09.12.2003 to 18.05.2005, by the Senior Intelligence Officer of DGCEI, the appellant furnished the documents voluntarily on 03.05.2007 and 18.06.2007. That the entire allegation is based on inconsistent and unreliable st....
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.... entries in the book tallied with the entries in the appellant's register and therefore it can be concluded that appellant was also part of the said activities of availing fraudulent credit. It is pointed out by the Ld. AR that the appellant did not produce any evidence (like gate register, weighment slips/challans, payment vouchers) to show that goods were actually transported to their premises. When allegation itself is about non-supply of material the appellants ought to have produced gate register, weighment slips/challans, payment vouchers signed by lorry driver, extract of GRN/cash ledgers from transporters etc. That merely because appellant made payments through cheques, the same cannot be considered a reason to conclude that app....