2020 (1) TMI 760

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.... they are not entitled to avail the Cenvat credit. 2. The facts of the case are that an investigation was conducted on the information of Central Excise Commissionerate, Dhanbad that M/s A.S. Infratel P. Ltd. Dhanbad has obtained Central Excise registration for manufacture of iron and steel items and some other units namely M/s Aditya Enterprises, Bokaro, Jharkhand who were passing inadmissible Cenvat credit on Cenvatable invoices of M.S. scrap to the manufacturer of excisable goods through M/s Shree Mahalaxmi Scrap Trading Company, Chomu, Jaipur to the appellants and who are availing Cenvat credit on the invoices without physically receiving the goods. Further, the investigation was conducted and the statement of the appellant namely Sh....

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....of the said statements, and without any further investigation, it was alleged that appellants have not received scrap from M/s Shree Mahalaxmi Scrap Trading Co. Consequently, they are not entitled to avail Cenvat credit on the invoices issued by M/s Shree Mahalaxmi Scrap Trading Co. The matter was adjudicated. Cenvat credit was denied. Consequently, appellants were asked to pay the said amount along with interest and penalties were also imposed on both the appellants. Against the said order, the appellants are before me. 3. None appeared on behalf of the appellants nor any request for adjournment have been received. 4. Records has been perused. On perusal of the record, I find that the appeals can be disposed of, therefore, same are t....

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....e appellant has taken CENVAT credit, in their statement have admitted that neither they have manufactured any goods nor they have issued any excisable invoices. (x) When the manufacturer has not manufactured any goods, how, the same can reach appellant's premises. Obviously, they have managed bazaar scrap from kabadees who purchases such scrap from local households etc. and have obtained invoices from M/s Shree Mahalaxmi Scrap Trading Co., Chomu. Therefore, CENVAT credit on such invoices is not admissible to appellant." 7. In the impugned order, the learned Commissioner (Appeals) himself has recorded the fact that M/s Shree Mahalaxmi Scrap Trading Co. used to place order for supply of scrap to the appellants directly through Shr....