2018 (6) TMI 40

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....on of 55 Si7 20.64 mm only. The appellant were procuring the raw material from M/s Jagdamba Steels and M/s Daga Trading Co. Pvt. Ltd., the two dealers of the raw materials. The same was being received by them under the cover of invoices issued by the said two dealers and the appellant was claiming the duty of Central Excise paid on the same as credit and was utilising the said credit for payment of duty on their final product. 2. The Revenue conducted searches in the premises of the said two dealers and made certain investigations and entertained a view that the said two dealers were only issuing invoices without the corresponding supply of the raw materials. Statements of authorised signatories were recorded and resumed records were scr....

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....ting authority, confirming the demand to the tune of Rs. 12,49,165/- as also imposing penalty of identical amount under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act. Penalty of Rs. 50,000/- was also imposed upon Sh. Dhanesh Kumar Jain, Authorised Signatory in terms of Rule 26 of Central Excise Rule. The said order of the original adjudicating authority stands upheld by Commissioner (Appeals) and hence the present appeal. 5. For better appreciation of the reasons adopted by Commissioner (Appeals), for denial of the benefit to the assessee are reproduced below: "6. It is on record that the appellant No. 1, M/s Vee Kay Industries were engaged in the manufacturing of elastic rail clips....

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.... be used for the manufacturing of ERC has never been sold by any of the two dealers i.e. M/s Jagdamba Steel and M/s Daga Trading Co. Pvt. Ltd. to the appellant No. 1 namely M/s Vee Kay Industries, the question of physical movement of the said material to the premises of appellant No. 1 M/s Vee Kay Industries, does not arise and the invoices issued in this regard are thus meant only for fraudulently passing on the benefit of cenvat credit to appellant No. 1. The objections raised by both the appellants in this regard are bereft of any merit, when Sh. Dhanesh Kumar Jain, Authorised Signatory, in his various statements tendered voluntarily, accepted and corroborated the findings of the investigation, thus leaving no scope for any interference ....