2018 (12) TMI 429

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...., availing CENVAT credit of duty paid on inputs, utilizing the same for discharge of duty liability on finished goods cleared. During the course of investigation of manufacturing unit M/s Benzo, officers of DCGEI noticed that Benzo manufacturing unit had put up a dealer and had passed on ineligible CENVAT credit to Benzo dealer and Benzo dealer has in turn passed on the CENVAT credit to main appellant by only issuing the invoices and materials were not supplied. It is the case in the show cause notice dated 30.12.2015 that main appellant during May, 2013 availed CENVAT credit of Rs. 4,45,499/- without receipt of material and hence they issue show cause notice for reversing of the same along with interest and also sought to impose penalties ....

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....iven by the individuals of the appellants and the director of the main appellant and dealers wherein it is stated that they have not received the materials but he has produced documents indicating the receipt of the materials and the consumption thereof. On limitation, it is his submission that they have always kept the department informed about the receipt of the material and also to buttress his argument that they have received the raw material, he would state that they would not have manufactured and cleared the finished goods on payment of duty in the absence of any raw material. 4. Learned department representative, on the other hand, submits that there was a DGCEI enquiry which revealed that Benzo dealers had no facility or procure....

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....cords that main appellant while filing monthly returns has shown the clearances of the finished goods manufactured out of goods received from the dealers. On this overwhelming evidences which are on record, the lower authorities have relied upon the statements of the individuals and has also on the Executive Director of Benzo dealers to hold against the appellant that they have availed ineligible CENVAT credit. 6. On specific query from the Bench, both sides agreed that the investigation did not take place at the end of the transporters, no statement was recorded of any individual from Padmashri Road Lines, and it is seen from the impugned orders that the adjudicating authority as well as the first appellate authority are not disputing t....