2017 (11) TMI 756

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....als are summarised below: 1) M/s. Flexituff International Ltd., Pithampur (hereinafter referred to as M/s. FIL) holding Central Excise Registration No.AABCN6658DXM002 are engaged in the manufacture of plastic Bags and sacks falling under Chapter 39 of the schedule to Central Excise Tariff Act, 1985 (5 of 1986). They are also availing Cenvat Credit of the duty paid on inputs and capital goods under the provisions of Cenvat Credit Rules, 2004. The respondent have also been exporting the goods manufactured by them under claim for Duty Drawback. 2) In pursuance to the intelligence collected by the Directorate General of Central Excise Intelligence, Regional Unit, Indore that M/s. FIL have procured bogus invoices from M/s. Signet Overseas ....

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....Rs being used by M/s. FIL for manifesting transportation. (v) Two sets of inward registers, one manifesting receipts for bogus as well as genuine invoices and other one reflecting actual receipts only. 4) M/s. FIL have maintained a common Form IV account indicating receipt and consumption of inputs used in manufacture of goods cleared to DTA as well as those cleared for export. 5) M/s. FIL have availed credit on some of the bogus invoices and have used the others for the purpose of creating a separate account manifesting consumption of inputs exclusively for manufacture of export goods on which benefit of higher rate of drawback has been availed by them by certifying that no credit has been availed by them on said invoices an....

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....the strength of the bogus invoices without receiving the goods and also availed excess drawback of Rs. 1,62,86,651/- a show cause notice dated 07.12.2007 was issued to M/s. Flexituff International Ltd., Pithampur by Additional Director General, DGCEI, Zonal Unit Ahmadabad proposing to recover the Cenvat credit availed on the strength of bogus invoices as also the excess availed drawback. After the due process of adjudication, the impugned order has been passed in which it was ordered as follows: a. Cenvat credit amounting to Rs. 38,41,487/- ordered to be recovered along with interest and penalties were imposed on M/s FIL, Shri Umesh Dwivedi, Vice President and Shri Mukesh Sangla, Authorised Signatory of M/s SQL. b. Demand ....

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.... by M/s FIL, the impugned order has ordered recovery of credit. Revenue has not brought any other evidence to establish that the export goods were procured through other invoices on which credit was availed. Moreover the AIR was sanctioned and paid by Customs authority at the port of export. If Revenue is of the view that excess drawback has been paid, action for recovery has to be initiated by the jurisdictional Customs authority. The Central Excise authority has no jurisdiction to initiate such recovery. In the result we uphold the dropping of demand for recovery of excess drawback. Revenue appeal on this ground is rejected. 7. Now we turn to the allegation that M/s FIL has availed fraudulently, the Cenvat credit on the basis of allege....