TaxTMI 
TaxTMI 
TaxTMI 
2019 (1) TMI 316
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....e inputs based on fictitious documents issued by one Second Stage Dealer namely M/s. Sekhar Iron Traders (hereinafter referred to as 'M/s. SIT'), the Officers of the Headquarters Preventive Unit, Coimbatore visited the registered premises of the appellants and perused the records. It was noticed that M/s. SIT had purchased scrap from open market without payment of CENVAT duty and sold such scraps to the appellants issuing invoices mentioning the description of goods as "scraps" and furnishing the description of goods purchased from the manufacturer as well as the First Stage Dealers as "scraps", whereas M/s. SIT had purchased only "MS Wires/Coils". In other words, the Credit earned on the purchase of some other items like MS Wires and Coils....
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..../s. SIT were thoroughly scrutinized. On perusal of the same, it was noticed that M/s. SIT had purchased goods mainly from the First Stage Dealers namely M/s. Karpagam Steels, Coimbatore, M/s. SV & Co., M/s. Ramesh Iron & Steels and M/s. Sky & Sky Corporation. In all the purchase invoices, the description of the goods was clearly mentioned as "MS Coils/Wires". In the column for the details of manufacturers also the description was clearly mentioned as "MS Coils/Wires". From this it appeared that M/s. SIT had purchased only MS Coils/Wires from the above said First Stage Dealers. (vi) Apart from the above said First Stage Dealers, M/s. SIT had also purchased goods directly from the original manufacturers namely, M/s. Abhirami Industries, Coim....
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...., a Show Cause Notice dated 11.08.2009 was issued inter alia proposing recovery of ineligible CENVAT Credit availed along with applicable interest and penalties. The Show Cause Notice also proposed penalties on Shri. C. Sukumaran, Managing Director of the appellant-company, who is the appellant in Appeal No. E/40083/2013, and many others. Thereafter, Order-in-Original dated 29.03.2011 came to be passed ordering recovery of CENVAT Credit availed in violation of the provisions of the Central Excise Rules, 2002, erstwhile CENVAT Credit Rules, 2002 and the CENVAT Credit Rules, 2004 along with applicable penalties. Proposed penalty was also levied on the Managing Director. The appellants having not met with success in their first appeal before t....
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....h the Department along with all CENVAT documents; that there was no verification in respect of CENVAT Bills involving duty of more than Rs. 10,000/- and that the Managing Director himself having denied in full, no reliance could be placed on the evidentiary value of the statements of others, especially when such other persons were not subjected to cross-examination. 6.3 In respect of the appeal filed by Shri. C. Sukumaran, Managing Director (MD), Ld. Advocate submitted that the appellant-MD having clearly denied the allegations leveled by the Department, there is no scope for levying penalty under Rule 26 of the Central Excise Rules, 2002. 7. Per contra, Ld. AR for the Revenue supported the findings of the lower authorities. 8. On a peru....
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....t with mixture of different variety and different physical features and after segregating they mentioned the diagram of each cutting to ascertain the variety of scraps. 11. Similarly, the statement of one Shri. K. Sampath Kumar, Purchase Officer of the appellant is recorded to have inter alia deposed that their purchase order specifically mentioned the chemical combination for which the lots will be tested; that afterwards material receipts and inspection reports will be prepared afterwards, showing the quantity, price, date, time, etc.; the prevailing price was Rs. 15/- to Rs. 16/- per kg without excise duty; that as per the ISO norms they had to purchase raw materials only from genuine suppliers; that they never received invoice without ....