TaxTMI 
TaxTMI 
2008 (11) TMI 213
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....t on the basis vague invoices without receiving duty paid raw materials and the proceeding was initiated by the Department against the assessee was within limitation. The order so passed required recovery of input credit of Rs. 78,91,213/- and penalty of equal amount was imposed for the violation of law, followed by interest. The Second appellant Sri Kamal Kumar Choudhury in appeal case No. 289/04 came in appeal against penalty of Rs. 25,000/-imposed on him u/s 209A of Central Excise Rules, 1944. 2. On a discreet enquiry and examination starting from technical feasibility to economic viability, proceeding was initiated against the Appellants for the period 1-4-1995 to 28-1-1996 noticing that fake duty paying documents fraudulently prepar....
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....ss of manufacture, availability of Modvat credit remains out of question. Ld. Adjudicating Authority has erroneously disallowed the benefit without appreciating governing facts and attendant circumstances while there was no evidence on record to prove that the inputs were not received by the Respondent. He relied on precedent decisions on such issue. 5. Shri K.P. Singh, learned SDR appearing on behalf of Revenue vehemently opposed submissions of the appellant on following grounds: (A) Enquiry against all the 7 (seven) dealer who had sold the input to the appellant were made and statement was recorded from them and such statements were confronted to the appellant. These statements went against the appellant since that remained uncontro....
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..... All these aspects need reconsideration and examination. 8. The order of adjudication should have thrown light on the extent of enquiry done, value of evidence gathered and appraisal thereof, confrontation of the material gathered during enquiry against the appellant to follow principles of natural justice and arrive at a rational conclusion. Therefore, we are of the view that if there is any fake document that was produced for claiming Modvat credit, actual delivery of the input by such suppliers being in question, the chain of evidence proving no delivery and no receipt of the input at both ends calls for proper demonstration on the order to make the order self-speaking. But coming to an abrupt conclusion without stating reasons shall....
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....rties whether standing in his name or in the name of his relations or associates will be forfeited to the State. Though, the question herein is not of forfeiture of property illegally acquired but on parity, a person committing fraud is required to restore the benefits taken and cannot be held to say that since an innocent person cannot be punished, such a person should also be exonerated. 11. It may be stated that when forgery/fraud renders a document itself to be null and void having no effects whatsoever due to its non-existence to seek duty credit, that shall no way grant relief to the claimant. Following the decision of the Hon'ble Supreme Court in the case of New India Assurance Co. v. Kalma & Others - (2001) 4 SCC 342, it may be s....