2021 (1) TMI 657

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....f the case are that premises of M/s Prem Steel & Metals Pvt Ltd (appellant no.1) were searched on 18.01.2011. During the course of stock taking, the shortage of 245.860 MT of pig iron was found and Shri M R Jaidka, Director of Prem Steel & Metals Pvt Ltd (appellant no.2) admitted the shortage and debited the duty involved. On the basis of that shortage, further investigation was conducted and it was found that during the period 01.04.2010 to 18.01.2011, the appellant received various goods/inputs and taken cenvat credit thereon but after compilation of the chart, the cenvat credit sought to be denied as per the 'Annexure-A' of the show cause notice, which is reproduced as herein below: During the course of investigation, it was also foun....

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....bmitted that whatever goods have been received by the appellants were used in manufacture of the final goods on which they have paid the duty, therefore, they are entitled for the cenvet credit. 4. Shri Sudeep Singh Bhangoo, the ld. Counsel appeared on behalf of M/s Madan Industrial Corporation (appellant no.3), submits that during the course of investigation they have made a categorical statement that they have supplied the goods and received the payments and the transportation has been arranged by the manufacturer/buyer, therefore, the penalty on the appellant cannot be imposed. 5. On the other hand, the ld. A.R. for the Revenue submits that during the course of investigation, it is an admitted fact that the shortage of 245.860 MT o....

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....exure to the show cause notice at Sr.No.1 & 2, the vehicles were found to be auto cycles and transportation of goods has been arranged by the appellant themselves. In these circumstances, the cenvat credit is not admissible to the appellant on the invoices issued by Kanhya Lal Jai Narain at S No. 1&2 of the SCN. Further, with regard to the invoice issued by Ram Parkash & Sons, their vehicle found to be Tractor Trailer and it has been alleged in the show cause notice that some of the vehicles were light goods vehicles which were later found to be heavy goods vehicles further the Tractor Trailer is capable of transportation of the heavy goods; therefore, I hold that on the invoices issued by Ram Parkash & Sons, the appellant is entitled to av....

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....he goods and received the payments and the buyer has arranged for transportation of the goods. In that circumstance, penalty on M/s Madan Industrial Corporation cannot be imposed, but it is also a fact that the transportation has been done by the appellant themselves and as per the D.T.O. report, the vehicles involved are scooters, which are not capable of transportation of heavy goods, therefore the cenvat credit to the manufacturer/buyer is denied mentioned at SNo. 5-8 of the SCN. 9. In view of the above discussion, the following order is passed:- a) cenvat credit is denied in some of the invoices namely issued by Kanhya Lal Jai Narain and M/s Madan Industrial Corporation to appellant no. 1. The same is required to be paid alo....