2023 (5) TMI 376

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....been imposed on Shri. Mukesh Kapoorchand Mehta Poprietor of M/s. Ganesh Metals under Rule 26(2) of Central Excise Rules, 2002. 2.1 The case was tooked against M/s. Lipid Systems Engineer P. Ltd and M/s. Bran Engineer Pvt. Ltd. as they had availed CENVAT Credit on the basis of Central excise invoices issued by the registered dealer namely M/s. Ganesh Metals, Propriety concern of the appellant, without actually receiving the goods mentioned in said invoices, in their factory premises during the years 2007-08, 2008-09, 2009-10, 2010-11. The show cause notice dated 23/12/2011 has been adjudicated by the Commissioner as per the Impugned order, holding the appellant responsible for providing invoices to the two companies without actual supply ....

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....y making debit entries of the commercial transactions as well as shortage in the said register during the investigation. That Mr. Mukesh Mehta in his statement dated 06.12.2010 in answer to question 5 & 6 has categorically explained as to the small shortage found in his stocks on the day of search. This shortage etc does not relate to any supplies made to said 2 parties ie M/s. Lipid Systems Engineers Pvt. Ltd and M/s. Bran Engineering Pvt. Ltd, as the last supplies to Bran Engg. Ltd was under their invoice 263 dated 28.09.2010 and to Lipid Systems Engineers Pvt. Ltd on 30.03.2010 under invoice no.255 dated 30.03.2010." The submissions so made in the memorandum of Appeal, Statutory/ other documents submitted establish that the Appe....

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....ransport (the transporter) has specifically admitted that they have not transported the goods mentioned in the invoices detailed in Annexure B to his statements dated 25-02-2011 and 14-03-2011 and that they have not received any payment therefor. Similarly, in his statement recorded on 25-08-2011, Sh. Prashant A. Gosavi, Manager of M/s Abhishek Transport (another transporter) has categorically mentioned that they have only two vehicles bearing nos. MH 14- BJ 1563 and MH 14-AH 2404 and, therefore, the vehicle numbers mentioned by M/s Ganesh Metals in their invoices are not of M/s Abhishek Transport and that they have not transported the goods mentioned in the invoices listed in the Annexures to the show cause- notice. These facts were cross ....

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....mpanying the material / inputs mentioned therein. Sh.Mukesh Kapoorchand Mehta, Proprietor of the, said M/s.Ganesh Metals has therefore rendered himself liable for penal action under the provisions of Rule 26(2) of the Central Excise Rules, 2002' 4.3 From the above facts we are of the view that appellant has in fact contravene the provisions of the Central Excise Rules, 2002, by providing the invoices without actually supplying the goods to the said two units. Hence, liable for final action under Rule 26(2) of Central Excise Rules, 2002. The total CENVAT credit that has been availed by the 2 units in contravention against the invoices of the appellant is amounting to [Rs.46,83,774/-(BED-Rs.39,76,774/- plus ED Cess - Rs. 78,622/- plus SHE ....