TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 1203
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....ered dealers, the officers attached to the Headquarters Preventive Unit visited the premises of the appellant on 25.01.2008. On verification of the purchase documents, it was found that they had procured scrap from M/s. Leadsman Enterprises, Coimbatore, M/s. Manju Steels and M/s. Sree Balaji Iron Traders. It was noticed that in all the CENVAT Credit invoices, the description mentioned was only Scrap/MS Scrap. As a follow up, the officers verified the sales and purchase documents of M/s. Leadsman Enterprises. It was found that M/s. Leadsman Enterprises had purchased only MS Wire Coils from M/s. Shri. Karpagam Steels and Sky & Sky Corporation. On the strength of these purchase documents, M/s. Leadsman Enterprises had passed on CENVAT Credit m....
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....sultant Shri. R. Balagopal appeared and argued the matter on behalf of the appellant. He submitted that appellants had purchased goods/inputs as per the invoices issued by the first stage dealer. Their raw materials being scrap, the invoices of the inputs also described the goods as scrap. The whole allegation is based on the statement given by Shri. R. Rajkumar, proprietor of M/s. Leadsman Enterprises. The appellants placed purchase orders to the dealers only for scrap and they have issued invoices for the same. There is no difference in the description of the goods purchased and sold to the appellants. All the payments were made through banks. They had submitted copies of invoices and ledger extracts to prove that the payments were made i....
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..... Vs. Juhi Alloys Ltd. - 2014 (302) E.L.T. 487 (Allhd.) to argue that it would be impractical to require the appellant to go behind the records maintained by the first stage dealer; that the appellant had acted with all reasonable diligence with the first stage dealer as provided in Rule 9(3) of the CENVAT Credit Rules, 2004. The appellant cannot be forced to do which is not practicable. The decision in the case of C.C.E., East Singhbhum Vs. Tata Motors Ltd. - 2013 (294) E.L.T. 394 (Jharkhand) was also relied by the appellant in support of the above arguments. He argued that since the appellants had acted in a bona fide manner, the extended period cannot be invoked. 5. The Ld. AR Shri. A. Cletus supported the findings in the impugned Order....
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....tly, there must be positive evidence to show that they have indulged in some wilful act enabling them to avail such wrong credit. In the present case, there is nothing brought out from the evidence so as to establish that the appellants have any role in the offence, if any, committed by M/s. Leadsman Enterprises and other first stage dealers. 8. The appellants have availed CENVAT Credit on the duty paid on the invoices. So also the entire transaction of the appellant has been through banks. Apart from certain assumptions based on the statements given by M/s. Leadsman Enterprises, there is no cogent evidence to prove that the appellants have availed wrong credit. The Hon'ble Allahabad High Court in the case of Juhi Alloys Ltd. (supra) had o....
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....ge dealer. The assessee, in the present case, was found to have duly acted with all reasonable diligence in its dealings with the first stage dealer. The view which the Tribunal has taken is consistent with the judgment of the Jharkhand High Court in Commissioner of C. Ex., East Singhbhum v. Tata Motors Ltd. - 2013 (294) E.L.T. 394 (Jhar.), where it was held as follows :- "... Once a buyer of inputs receives invoices of excisable items, unless factually it is established to the contrary, it will be presumed that when payments have been made in respect of those inputs on the basis of invoices, the buyer is entitled to assume that the excise duty has been/will be paid by the supplier on the excisable inputs. The buyer will be therefore e....