TaxTMI 
TaxTMI 
2023 (11) TMI 608
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.... the Respondent ORDER Per Ashok Jindal : Both sides are in appeals against the same impugned order. 2. The facts of the case are that on 30.01.2008, the Central Excise Anti-evasion Team visited the registered premises of the appellant, admeasuring 300 sq.ft.,which was used by M/S BDS Control Systems for manufacturing their own products, in terms of a contract with the appellant and no activity, nor any raw materials or finished products of the appellant assessee in the said premises was sighted. The statements of Shri Dipak Das, supervisor of M/S BDS Control Systems and Shri Dilip Dey, partner of M/S BDS Control Systems revealed that said M/S BDS Control Systems was engaged in the manufacture & production in the said premises si....
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....he Accountant and he shall produce all the records within 7 days, but no evidences have been produced by Shri Jayanta Kumar Saha or his Accountant, Shri Bimal Sarkar and Shri Bimal Sarkar was not found on the postal address given by Shri Jayanta Kumar Saha. 2.5 Further, an investigation was conducted and on the basis of the said investigation, it was alleged that in the show-cause notice, the appellant assessee is engaged in the activity of paper transaction availing cenvat credit and on the basis of invoices supplied by the supplier of raw materials and further issuing invoices without supplying any goods enabling the persons to take cenvat credit without actual receipt of the goods. Therefore, the cenvat credit availed by the appellant....
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....but assumed only that such huge quantity of manufacturing is not possible. The said observation has been made on examination of various records maintained by the appellant assessee, but not on the study and verification of machines and machineries. 3.2 He further submits that the electricity consumption was sufficient since they were only doing cutting and joining of iron and steel items part by part. The cutting of huge size of material was being done from outside. The stock of material was not found on the day of visit of the officers since at that time due to high price of iron and steel, the appellant assessee did not give anything after exhausting the stock. 3.3 It is his submission that if there is no manufacturing of goods, the....
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....t be the basis for arriving at an adverse conclusion since the said report was lacking consideration of the capacity of the machines in the said report. 3.9 He further submits that the appellant assessee has paid the duty and even if there are any irregularities, the said payment of duty is amounting to reversal of the cenvat credit. 4. On the other hand, the ld.A.R. for the Revenue supported the impugned order. 5. Heard both the parties and considered the submissions. 6. Ongoing through the facts placed before us and the arguments advanced by both sides and the relied upon case laws relied by both sides, we find that in this case, it is fact on record that the premises of the appellant assessee is only 300 sq.ft., which was ren....
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....of M/S BDS Control Systems. 6.3 The information received from electricity Department, it is evident that the consumption of electricity by the appellant assessee in the said premises during 2006-07 was a meagre 5376 units for Rs.18,310/- at average monthly consumption of 448 units at the rate of Rs.1526/- only per month, according to the Chartered Engineer, for manufacture of Machineries as declared by Shri Saha, minimum Power consumption per month in a single shift of 8 Hrs should be 10,400 units, as against average consumption per month in 2006-07 shown as 448 units only. Be that as it may, the audited balance sheet of the appellant assessee for the aforesaid period showed an expenditure of Rs.1,38,280/- toward electricity charges whic....
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....e. Shri Saha also informed the Revenue that he did not make any payment toward outward freight. The appellant assessee's customers, be it their suppliers or buyers, denied having incurred any expenditure toward transportation of goods to or from the appellant assessee. Therefore, the question arose, who paid the transportation charges ? 6.9 On an enquiry from the transporter, it was found that M/s Essel Transport was non-existent at the given address. Likewise (i) Shree Shyam Roadways, (ii) Rishabh Carriers Road, (iii) Shree Lakshmi Carriers were found to be non-existent at the given addresses. But at the given address, only Pawan Cargo Carriers admitted to have transported goods of Saha Industries through Jamshola Ghat Check gate, but o....