2008 (7) TMI 89

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....dent-assessee has fradulently availed Modvat credit to the tune of Rs. 2,17,821/- of invoices issued by M/s. Majestic Industries Limited without physically receiving the goods. On physical verification at the premises of the registered dealer, it was found that there were no stocks of goods against the recorded balance of 243 MT of HR/CR Coils/Sheets and 98 MT of steel scrap in RGT-23D register. The registered dealer explained that they had sold the material without issuing invoice and they were making transit sales of the goods in the absence of any godown. It was also found that the number of trucks used for receipt of the goods and dispatch of the same goods were different. The Transport Company which issued GRs was also found to be fict....

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....it was availed in the year 1996 whereas the present investigation was made in the year 2000. The respondent was filing regularly the RT-12 returns along with necessary documents and, therefore, there is no infirmity in the order passed by the Commissioner (Appeals). The relevant part of the order of the Tribunal is reproduced herein below :- "In this case, the revenue denied the credit on the ground that the respondent had not received the inputs; however, credit was availed on the strength of duty paying documents. The statement of dealer is very clear on this issue which says that they were making transit sales in respect of goods received from their factory. It is also the objection of the revenue that the transporters were non-existe....

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....sue of invoices without actual movement of goods. Therefore, the question is whether the Tribunal is empowered to set aside the facts which have been proved in the investigation?" 5. We have heard Mr. Kamal Sehgal, learned counsel for the revenue and perused the record. However, we find no force in the contention raised by him. The Tribunal has recorded a finding of fact that the inputs supplied by the respondent were duly received by the manufacturers and were used in the goods manufactured, which were cleared on payment of duty. The Tribunal also found that the Department has not been able to prove that any other alternative raw material was received and used in the final products. The Tribunal also held that the findings of the Com....