2017 (12) TMI 603

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.... of M/s. Genius Electrical & Electronics Pvt Ltd. and M/s. Sattvik Industries.) 2. The brief facts of the case are that M/s. Satvik Industries, were engaged in manufacture of PVC insulated wire, winding wire of copper and non-adhesive tape falling under Chapter Heading 8544.90 and 3920.12 of the Central Excise Tariff Act, 1985. Their factory was visited by the Central Excise Officers on 07.02.2003 who conducted various checks and verifications. As a result, it came to the notice of the officers, that the appellant has been showing the purchase of PVC compound from one M/s. Aggarwal Plastic (India) and were availing the benefit of modvat credit paid thereon. However, it came to light that M/s. Aggarwal Plastic stopped their manufacturing ....

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....ourt and the matter remanded to the Adjudicating Authority for passing de novo orders in respect of M/s. Genius Electricals and M/s. Satvik. The de novo proceedings were finalised vide the impugned order dated 29.10.2009. 4. Vide the impugned order dated 29.10.2009, the duty amounting to Rs. 1,06,01,497/- stands confirmed against M/s. Satvik Industries along with imposition of penalty of identical amount. Likewise the duty of Rs. 16,07,133/- stands confirmed against M/s. Genius Electrical along with equal penalty. Vide the earlier impugned order dated 26.03.2007 (which is applicable against M/s. Asha Chemicals) duty amounting to Rs. 9,61,504/- and 4,53,529/- stands confirmed against M/s. Asha Chemicals along with applicable penalties. ....

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....as noticed by the Department that such Cenvat Credit to the tune of Rs. 2,07,66,410/- has been passed on by issuing fraudulent invoices. Shri Rajeev Aggarwal, authorised signatory of M/s. Aggarwal Plastics in his various statements have admitted these facts. He admitted that the receivers used to take Cenvat Credit mentioned in the invoices, make payment by cheque out of which he used to return the amount in cash after retaining commission to the extent of 1% to 2.5% of the invoice value. He further admitted that he had only sold "sales invoices" without supplying the raw materials. Such invoices stand issued to M/s. Satvik Industries, who was a manufacturer of PVC insulated wire. Such invoices have also been issued to M/s. Asha Chemicals a....

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....uestion for decision is whether the Cenvat Credits availed on the basis of such invoices are admissible. 12. The main argument advanced on behalf of the appellants is that whatever credit was availed, even if fraudulently, stands reversed at the time of issue of invoices for passing of such credit. M/s. Satvik Industries has further claimed that they have also paid some additional duty in cash. Accordingly, it has been submitted that the entire credit stands reversed by them. 13. We are not in agreement with the arguments advanced on behalf of the appellant. 14. The expression "reversal of credit" is normally used when wrong credit is reversed by debit in the cenvat credit account without issue of any invoice. The expression is als....