2018 (2) TMI 567

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ire is the first stage dealer and M/s Bansilal S. Kabra is the second stage dealer. These dealers procure inputs and supply it to the manufacturer, namely, M/s Innova Cast P. Ltd. Who in turn, avail credit of duty mentioned in the invoices issued by the second stage dealer M/s Bansilal S. Kabra. Alleging that M/s Innova Cast P. Ltd. availed Cenvat credit without receipt of inputs, SCN was issued for recovery of Cenvat credit of Rs. 51,326/- and proposal for imposition of penalty; personal penalty on other appellants. On adjudication, the demand was confirmed with interest and penalty on M/s Innova Cast P. Ltd. and personal penalty of Rs. 51,326/- and equivalent penalty on Jenil Empire and Bansilal S. Kabra. Aggrieved by the said order, they....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ement of inputs, right from the first stage dealer to the manufacturer recipients. Advocates appearing on behalf of the manufacturer recipients argued that both inputs and cenvatable documents were received in the factory of manufacturers and have been properly accounted for and used in the manufacture of the finished goods for which payments were made by cheque. It is observed that no investigation has been done at the end of the manufacture recipients end to the effect that the vehicles used for transport of inputs from second stage dealer to the manufacturers factory were not capable of transporting the inputs received by manufacturer. There is also no evidence on record that manufacturer recipients were aware of the fact that inputs rec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat there was no movement of inputs between them and that only cenvat credit was passed on through documents. Both, Shri Bansi Lal S. Kabra, Director of M/s. Bansi Metal and Alloys Pvt. Limited and Shri Sunil Natwarlal Parikh, Proprietor of M/s. Jenil Empire have admitted the facts that there was no movement of inputs between them and that only cenvatable documents were prepared. Appellants have argued that no penalty under Rule 26 of the Central Excise Rules, 2002 can be imposed upon them for the period prior to 01.3.2007 as no penalty was imposable for the earlier period on the first stage dealer or second stage dealer. Second stage dealer has subsequently prepared invoices and provided inputs which he was aware are not the same inputs fo....