2018 (2) TMI 202

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....ivate records showing removal of MS ingots. On further investigation, it appeared to the department that the appellants were manufacturing and removing MS ingots clandestinely without payment of duty partly under duplicate set of invoices and partly without any invoice. Proceedings initiated against the appellant resulted in adjudication order dated 10.9.2008 where the adjudicating authority confirmed demand of central excise duty of Rs. 19,16,874/- on the alleged clandestine removal of MS ingots during April 2006 to July 2006 along with interest liability thereon and also imposed equal penalty under section 11AC of the Central Excise Act. In appeal, Commissioner (Appeals) vide the impugned order dated 8.6.2009 upheld the order of the adjud....

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....in is not proper and justified. 2.4 Ld. Counsel submits that on the quantity of scrap obtained from Salem Automech, the same had been obtained from BHEL by the seller who was the dealer; since the said goods had already suffered excise duty at the hands of BHEL, they should be given the benefit of CENVAT credit thereon. In support of this, ld. counsel submits BHEL material accounting statement and ledger accounts of Salem Automec in respect of Shri Krishna Smelters Ltd. 3. On the other hand, ld. AR Shri S. Govindarajan supports the impugned order. He submits that it is a clear case of clandestine removal of MS ingots, not only by utilizing unaccounted quantities of MS scrap but also using modus operandi of parallel invoices etc.....

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....ginal authority only for the limited purpose of ascertaining the exact quantum that has been discharged by the buyers and which will then have the effect of reducing the net duty liability to be demanded from the appellant. 5.2 Coming to the plea of the appellant in respect of receipts of MS scrap from M/s. Salem Automec, a dealer of BHEL, the appellants contend that these purchases were out of duty paid clearances of M/s. BHEL made to Salem Automec Ltd. Accordingly, the excise duty that has been suffered in such goods should be allowed to be taken as CENVAT credit. No doubt, that is the very intention of the CENVAT scheme. However, to benefit from the facility, appellant will necessarily have to produce the dealers invoice with proper ....