TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 673
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..../s Vardhman Chemicals have filed appeal against impugned Order-in-appeal No. AHM-EXCUS-001-APP-073-2018-19 dated 24.10.18 passed by Commissioner (Appeals), Ahmedabad. 2. The brief facts of the case are that M/s Yahska Polymers were issued show cause notice dated 05.12.2016 that they have availed credit on the invoices issued by M/s Laxmi Dye Chem and M/s Harshlaxmi Chemisolv without receipt of inputs. The show cause notice relied upon the Notebooks of M/s Laxmi Dyechem that it contains the Alphabet 'E' and 'M' between the name of Columns and Name of the Unit. The Alphabet 'E' represents only where invoice were issued without actual supply of goods and the Alphabet 'M' represents issue of invoice alongwith supply of goods. That on going th....
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....e of M/s Laxmi it was also contended that they did not have facility of storage the liquid goods and M/s Yahska has availed credit on goods transported through tankers. There was difference of 0 to 122 days between the date of invoice issued by the manufacturer/ importer/1st Stage dealer to M/s laxmi and the date of invoices issued by M/s laxmi to M/s Yahska. That on investigation it was found that the goods were consigned to another party vide transport vehicles whereas the same were shown to have delivered to M/s Yahska. That the transporter Shri Vishanji Thakkar, Proprietor of M/s Yash Roadways through whom the goods in part consignment was shown to have been transported to M/s Yahska, in his statement dated 23.09.2016 has stated that th....
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....me as well as imposition of Penalty. The adjudicating authority vide order dated 28.03.2018 confirmed the demand and penalty as proposed. Aggrieved, M/s Vardhman filed appeal before Commissioner (Appeals) who vide impugned order dated 01.10.2018 upheld the adjudication order. Hence present appeal by M/s Vardhman Chemicals. 4. The Appellants vide letter dated 23.10.2019 submit that the appeal be decided on merit considering submissions made in appeal. The appellants, in their appeals made the submissions that the whole case has been made against them on the basis of documents alleged to have been seized from third party and statements of various parties without extending investigation of persons to whom the goods were actually alleged to b....
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.... upon Hon'ble Gujarat High Court judgment in case of Motabhai Iron and Steel Industries 2015 (316) ELT 374 (GUJ.) and Saakeen Alloys Pvt. Ltd. 2014 (308) ELT 655 (GUJ.) as well as Tribunal judgment in case of Namo Alloys Pvt. Ltd. 2014 (303) ELT 577 (TRI-DEL), S.K. Sarawagi & Co. Pvt. Ltd. 2018 (12) GSTL 42 (TRI) upheld by Chattisgarh High Court as reported in 2018 (12) GSTL J28 (Chhatisg.) , G.S. Alloy Castings Ltd. 2016 (331) ELT 310 (TRI). He also submits that during the first visit on 10.09.2014 at M/s Harshlaxmi the investigation did not find any evidence. However again on 16.09.2014 they visited the premises and found diary. It is not understood as to how the documents suddenly figured on 16.09.2014. They also submits that reliance on....
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....ons has been conducted to ascertain from the parties to whom the inputs were allegedly actually sold by M/s Laxmi Dyechem and M/s Harshlaxmi Chemisolv to ascertain the actual position. The show cause notice is absolutely silent about the investigation at the end of alleged actual recipients who allegedly received the goods without cover of invoice. On the other hand the records and documents maintained by the Appellant concerns showing receipt of inputs in their premises, accounting of same, utilisation of such inputs in manufacture of finished goods and clearances thereof on payment of duty and the said vital fact has not been disputed by any evidence. No alternative input shown to have been procured or used by the Appellants in place of a....
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....in while upholding the Tribunal order it held as under : "19 - From the findings recorded by the Tribunal, it is apparent that payment to M/s. Vasmin Corporation in respect of purchases was made through banking channels. Under the circumstances, the Tribunal has lightly held that the demand cannot be confirmed against the assessee. The Tribunal has further found that it is an undisputed fact that all the purchases were duly recorded in the statutory books of the assessee and the goods were also found to be entered in its statutory records. That the Department had not made any investigation at the unit of the assessee, which could have supported the findings of the adjudicating authority. None of the consignors of the goods have denied th....