TaxTMI 
TaxTMI 
2009 (4) TMI 150
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....Shri R.S. Srova, learned JDR appearing on behalf of the Revenue. 2. M/s. Piyush Engineering Works is engaged the manufacture of I.C. Engines i.e. Crank Shaft, Cylinder Head and Blocks falling under Chapter 84 of Schedule to Central Excise Tariff Act, 1985. During the relevant period, they were availing the benefit of Modvat credit on inputs so received by them. Their factory was visited by Central Excise officers on 24-4-03, who conducted various checks and verifications. The stock of forged cranked shaft was found to be tallying with the recorded balance, but no stock of Pig Iron/Skull or castings (the other inputs) were found in the premises. From the records maintained by the appellant, it was seen that the same was sent to their job ....
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..... Statement of Shri K.D. Sidpara, authorized signatory of M/s. Piyush Engg. was also recorded, deposing that he was preparing job work challans in the name of non-existing job workers under the directions of his employer. Subsequently, the investigations were conducted at the end of M/s. R.M. Enterprises (registered dealer), who has supplied the invoices without actually supplying the inputs. During such investigations, the names of M/s. Hem Sales and M/s. Usha Ispat Ltd. also figured who had sent the Pig Iron/Skull to M/s. R.M. Enterprises. 4. Investigations were also conducted at the end of M/s. S.D. Enterprises and statement of its partner Shri Deepak Agarwal, were recorded. He stated that they were engaged in the manufacture of S.S. ....
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....as residential area. The said fact that the job worker's factory was a residential area, does not stand disputed by the appellant either during the course of investigation or during adjudication proceedings or even before us. If no job workers existed at the address given in the invoice, it is inconceivable as to how Pig Iron/Skull was converted into castings, as contended by the appellant. This fact, itself, leads to inevitable conclusion that no inputs were ever sent to job workers. 7. It that be so, a question arises as to whether Pig Iron/Skulls were received by the appellant at all or not. It is seen from the on the spot statement given by D.G. Patel, Proprietor of M/s. Piyush Engg. On 24-4-03, admitting that only invoices were bein....
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....s. Usha Ispat Ltd. and M/s. Hem Sales, were made by them through cheque, but the amount was subsequently received back from M/s. R.M. Enterprises in cash. He has also admitted that no final product was ever sent to M/s. S.D. Enterprises, Mumbai and the payments received by him through cheque from M/s. S.D. Enterprises were being sent back to him along with 5% of Excise duty in cash through courier. The said appellant while admitting their offence also deposited duty of Rs. 2 lakhs during the course of investigation. As such, we are of the view that there is enough corroborative evidence on record to show that the transactions between M/s. R.M. Enterprises and M/s. Piyush Engineering were only on paper and no modvatable goods were actually r....