2018 (2) TMI 1555

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..... Briefly, the appellant is manufacturer of auto parts and had purchased inputs from a first stage dealer M/s Regal Metal & Ferro Alloys. Revenue received the intelligence that the dealer had purchased wire rods from different manufacturers but issued invoices for steel rods to appellant resulting in availment of irregular Cenvat credit by appellants on the basis of improper invoices issued by the first stage dealer. A statement of Sh. Jagdish Sharma, Accountant-cum-authorized signatory of the appellant was recorded on 24.02.2010, in which he admitted that they had never received the wire rods in their factory premises. A show cause notice was issued. In adjudication, the demand of Rs. 3,06,162/- was confirmed along with interest and penalt....

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....ed the description of the goods from wire rods to steel rods without actually supplying the goods manufactured by the appellants. This is supported by the statement of Sh. Jagdish Sharma that they did not receive the wire rods in their factory premises. In this context, the following findings of the adjudicating authority are particularly relevant: "From the statement dt. 24.02.2010 tendered by Sh. Jagdish Sharma, Accountant-cum-authorized person, it is found that the said dealer had actually not supplied the same goods to the noticee which he had received from the supplier/manufacturer and the said dealer had actually substituted the materials by another material against the cited invoices. Their dealer has changed the description....