2019 (6) TMI 1512

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....d Order-in-Appeal dated 18.01.2018 passed by the Ld.Commissioner(Appeals), Ranchi, in the appeal filed by the Revenue. At this stage of the original adjudication, the Ld.Addl.Commissioner of Central Excise, Jamshedpur, vide Order-in-Original dated 30.03.2017 had dropped the proceedings against which the Revenue preferred appeals before the Ld.Commissioner(Appeals) whereby duty demand proposed in the Show Cause Notice was confirmed alongwith penalty and interest for the period 2011-12 and 2012-13. 2. Briefly stated the facts of the case are that the appellant assessee M/s.Suraj Logistics Pvt Ltd, are engaged in the manufacture of PVC pipes and fittings, FDPE pipes, etc. on which central excise duty is being paid. The appellant company engag....

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....l the manufactured goods first and the question of earning profit becomes far-fetched reality. He observed that the assessee as entrepreneur was well within his right to pay the rate of commission he considered appropriate. He also observed that the appellant assessee maintained all the necessary records and the credit was validly availed on the strength of proper service tax invoices issued by SPPL. He further observed that the whole basis of issuance of the SCN was to deny the credit in view of the investigation initiated at the end of Sri Ranjit Gupta, Director of SPPL wherein his statement was obtained as part of follow up investigation against SPPL in pursuance of investigation against one M/s.Akshay Steel Works Pvt.Ltd. as was eviden....

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....,93,222/- with applicable interest and equivalent penalty on the assessee and also imposed penalties under Rule 26(2) of the Excise Rules on Sri Prakash Khemani, Director of Suraj Logistics, and SPPL by allowing the appeals filed by Revenue. 5. Shri A.K.Raha and Shri A Dutta, Advocates appeared for the appellants and Sri A Roy, Supdt. (A.R.) appeared for the Revenue. 6. The Ld.Advocates appearing on behalf of the appellants submitted that no case could be built against them merely on the basis of statement of Sri Ranjit Gupta, Director of SPPL, which is neither relied upon in the SCN nor a copy of the same has been provided to the assessee in the course of adjudication as admitted by the Ld.Commissioner(Appeals). He also submitted that th....

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....rein the Director of SPPL, Sri Gupta, has made confession of having issued bogus invoices for incentive of 0.1% with cash pay back to the clients. He also stated that even though the proceedings initiated against SPPL pertained to its transactions with Akshay Steels, the same could be extended to Suraj Logistics and accordingly the credit is rightly denied. He prayed that the appeals of the assessee be accordingly rejected. 8. Heard both sides and perused the appeal records. 9. We find that the dispute pertaining to disallowance of credit in the hands of the appellant assessee, Suraj Ligistics, is mainly based on the assessment orders passedby the Income Tax Department on SPPL and the statement of Sri Gupta, Director of SPPL, which provid....