2018 (1) TMI 478

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....at arise for appeal is the respondent herein had availed cenvat credit of an amount of Rs. 36,52,368/- during the period January 2011 to May 2011 on the invoices issued by one M/s. Ravi Steel Industries, Nagpur. On an investigation, it was found that cenvat credit availed by the respondent herein was ineligible as the invoices on which cenvat credit were issued by the said Ravi Steel Industries were fake or parallel invoices. A show cause notice dated 2.9.2013 was issued to the respondent for the demand of the cenvat credit so availed on an allegation that the respondent had availed cenvat credit without receipt of the goods in the factory premises. The said show cause notice was adjudicated by the lower authorities and the duty demand was ....

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....gal credit. (iv) The respondent is working under self assessment procedure as per Rule 9(5) and they should have verified whether Ravi Steel Industries has discharged the duty liability or not. Having not done so, cenvat credit availed is incorrect. (v) The adjudicating authority has recorded clear cut finding that the respondent has not recorded any of these transactions in the records and the penalty imposed on the individual as well as on the main respondent needs to be restored. 5. On careful consideration of the submissions by learned departmental representative, I find that the first appellate authority in the impugned order in para 47 has clearly recorded that the respondent herein was issued two show cause notices. Show cau....

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....ri.-Del.), recorded the following factual findings which are reproduced below:- "57. Moreover, no other shortages etc. has been proved by the Department against the appellant in the instant case. I find that these issues are always prevailing in the Iron & Steel sector due to huge volumes, transshipment in transit and many other reasons as discussed supra that the vehicle numbers don't match and the timings of clearances don't match. I find that in such cases it has to be proved conclusively that the input stock is short at the end of the consignee then only it can be substantiated that the goods have not been received and only the invoices have been received. Therefore, following the ratio of the above judgments, I hold that rec....