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2017 (4) TMI 840

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....s) manufacturers of bulk drugs and intermediates had indulged in incorrect availment of cenvat credit based on invoices issued by registered central excise dealers without actual supply of materials. One of such dealers was the appellant herein M/s. Aerochem Impex Pvt. Ltd. (hereinafter referred to as appellant). It was alleged that appellant having a central excise dealer registration, had issued invoices based on Cenvat Credit of Rs. 74,93,250/- without actual supply of raw material viz., :Micro Crystalline Cellulose" (MCC). After due process of adjudication, vide impugned order dated 31.05.2013, interalia, in addition to demand of Rs. 74,93,250/- irregularly availed credit from Y.M. Drugs, a penalty of Rs. 25,00,000/- was imposed on the ....

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....nd dispatch, and no jeopardy to Government Revenue was caused in the said exchange and cyclic movement of invoices, nor was there any intention, manifest or implied, to clear any goods surreptitiously with the fictitious credits by any person as also found by the authorities and the exchanges were only meant to show artificial turnover to funding institutions as admitted by parties, no offence under Central Excise provisions can be said to have been committed. iv) In the facts and circumstance, penalty under Rule 28 is not leviable on the appellant. 4. On the other hand, ld. AR, Shri Arun Kumar, appearing on behalf of Revenue supports the adjudication. 5. Heard both sides and have gone through the records. 6.1 Appellants have come on a....

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....ment of materials. It was also admitted that only adjustment entries were made by raising journal vouchers and entry thereof in the books of the appellant and that there was no actual payment. 6.4 There is then no doubt that appellant had issued cenvatable invoices knowing fully well that there is no movement of goods and thus facilitated availment of irregular credit by favricated documentation. Appellants have sought to defend their actions contending that it was only a book adjustment for showing more turnover in their books of accounts. Such a submission is not even worthy of consideration since it has emerged that the entire modus was planned and designed only to facilitate irregular cenvat availment. Verily, we find that all the cont....