TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 262
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....dated 07/03/2015. That was referred to Third Member by Hon'ble President, for resolution of difference. While hearing by the third member was going on, a rectification application was filed by appellants before Tribunal stating that there was mistake crept in that order which required rectification. 2. surprisingly, when a third member reference was made, and that member was hearing the difference, the bench which had heard the appeal would not have entertained the MA(ROM) to pass an order since that may cause jeopardy to the reference. However they rejected the application on 11/09/2015. 3. In view of the dismissal of the ROM application, the appellant approached the Hon'ble High Court of Bombay, in Writ Petition No.2938 of 2015. Hon....
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....f the outcome of the investigation and examination of the records of the appellant's factory. Revenue found lot of discrepancies and incriminating evidence. It was alleged that the goods were manufactured by the appellant without using the prime raw-material but scraps were used. Such fact led Revenue to examine 571 invoices issued by 86 suppliers as to the nature of the raw material received in the factory of the appellants. According 10 the outcome of the investigation described in four show cause notices, appearing at page 190 of the appeal folder in the case of Jagat Alloys Pvt Ltd, appeal No.E/1625/2006, summary of allegations were as under: '27. SUMMARY 27.1 It appears that the assessee is involved in large sales manipulation of re....
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....h banking channels using fraudulent means. b) create documents for market purchase of Aluminium Scrap from unregistered dealers. c) to provide for flow back of sale proceeds of prime Aluminium Articles such as Aluminium profiles and channels, aluminium wire etc. sold which are diverted to the market clandestinely. d) to provide for flowback of funds from suppliers of prime material, involving only' paper transactions. e) to enable fictitious purchases of capital goods to avail subside, depreciation, bank finance, sales tax set off. 27.6 Assessee is a company registered under Indian Companies act, 1956. Assessee is required to prepare the Annual Financial statements in accordance with provisions of the Companies Act, Statutory requi....
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....here is neither purchase of Aluminum Powder nor any claim of the assessee that it converts purchased Aluminum into aluminium Powder or has machinery for this purpose. Assessee has claimed before banks, large finance for Are furnace for primary extraction of Manganese from manganese Ore using conventional process of using carbon as reducing agent. Assessee has categorically informed the bank that it has discontinued thermit process. It appears that the assessee is using Thermit process as a ploy to justify exaggerated purchase of Aluminum materials. 27.9 It appears that quantity of Aluminum materials (on which Cenvat credit has been availed) are far in excess of actual requirements. 27.10 It appears that prime aluminium articles such as Al....