TaxTMI 
TaxTMI 
2022 (3) TMI 6
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....ces issued by such suppliers. 3. Investigation was carried out by the Central Excise Department against various manufacturer/dealers and it was alleged that such manufacturer/dealers (suppliers of inputs-scrap) were non-existent and some transactions between such manufacturers and/or dealers and the appellant, appeared to be dubious. 4. It is alleged that the appellant had purchased M.S Scrap from various First Stage dealers, namely, (i) Jetking Trading & Agencies; (ii) Rakti Trading Pvt. Ltd; (iii) Yes Commtrade Pvt. Ltd.; (iv) S.R. Metalics; (v) Bright Metal & Steel; and (vi) RMS Steel Tech (Co-noticee Nos. 7 to 12), all of Raipur. On the basis of information, the Department issued show cause notice dated 26.05.2017, alleging that the assessee-Appellant is evading payment of Central Excise duty by availing Cenvat Credit on the basis of invoices issued by said First Stage Registered Dealers, without actually receiving the goods i.e. MS Scrap from them. The details are - Table Sl.No. Dealer's name on whose invoices credit is availed. Description of goods which are shown to be sold by the dealers. Manufacturer's name shown in the invoices of dealers Amount of Cenvat Credi....
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....es on the company and the other Appellant - Director. Being aggrieved, the assessee-Appellants have filed the present appeals. 6. With this background, we have heard the learned counsels for the Appellants and the learned Authorised Representative for the Department. 7. The learned Counsel for the assessee-Appellant, M/s M.J. Steels Pvt. Ltd. assailing the impugned order, submitted that they have purchased the raw material, namely, MS Scrap from the said First Stage Dealers, on the basis of 4228 duty paid invoices accompanied with weighment slips. For purchase of the said raw material, payments were made by way of a/c payee cheque or RTGS or through banking Channels, and necessary entries on receipt in the RG-23 Register were also made. Accordingly, Cenvat credit was availed by them in accordance with law by intimating the Department by filing ER-1 Returns regularly. 8. Regarding the allegation that payments were made through cheques and in lieu thereof cash was received, the learned counsel submitted that during search by the Revenue neither any unexplained cash was recovered from the premises of the assessee-Appellant, nor any corroborative evidence was brought on record to su....
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..... Jharkhand High Court in Commissioner of C. Ex., East Singhbhum v. Tata Motors Ltd. - 2013 (294) E.L.T. 394 (Jhar.), wherein it was held that :- "... Once a buyer of inputs receives invoices of excisable items, unless factually it is established to the contrary, it will be presumed that when payments have been made in respect of those inputs on the basis of invoices, the buyer is entitled to assume that the excise duty has been/will be paid by the supplier on the excisable inputs. The buyer will be therefore entitled to claim Modvat credit on the said assumption. It would be most unreasonable and unrealistic to expect the buyer of such inputs to go and verify the accounts of the supplier or to find out from the Revenue or Central Excise whether actually duty has been paid on the inputs by the supplier. No business can be carried out like this, and the law does not expect the impossible." 12. Learned counsel further submitted that the Revenue did not make any investigation to ascertain whether the Dhanbad parties were in existence at any point of time or stopped their operation subsequently. Being "non-operative" does not necessarily leads to a conclusion that the said parties w....
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....e order-in-original. Transporters or owners of the vehicles, claimed to have been used in transportation of the goods by the dealers, in their statements have categorically denied to know the appellant and transport of any goods in their vehicle, mentioned in the disputed invoices. The unlawful sale proceeds transferred to the account of dealers was managed for purchasing of wire rods, H.S. Wire, M.S. Round and T.M.T. bars from these dealers and sold in grey market in cash. The wire rods, H.S. Wire, M.S. Round and TMT bars were purchased by these dealers from manufacturers in the name of fake buyers. Shri Rajesh Agarwal, Raipur is a commission agent of Iron and steel products, used to arrange procurement of bazaar scrap, kabadi scrap and other non-cenvatable scrap, in alliance with one Shri Pradeep Kumar Agarwal, who used these sales proceeds against Cenvatable invoice. Shri Prince Kumar Singh in his statement dated 15.12.2015 accepted above facts. Shri Vivek Agarwal, Director/appellant stated that his company sold 400 MT of bazaar scrap and Kabadi scrap to M/s. Bright Metal & Steel, who are alleged to have issued fake cenvatable invoice, showing supply of iron and steel scrap for ....