AI Drafter 
TaxTMI 
TaxTMI 
2025 (5) TMI 640
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....y or through second stage dealer on the basis of invoices of non-existent manufacturers, an investigation was taken up by the regional unit of DGCEI, Jamshedpur. Searches at the premises of four manufacturers, 11 first stage dealers and 15 second stage dealers were conducted. Further enquires were also conducted by various Central Excise Commissionerates. On the basis of the above intelligence of DGCEI, letter received from Commissioner, Central Excise, Kolkata - III and Superintendent Central Excise Range, Kulti, investigation in respect of sales made by 6 second stage dealers was initiated by the anti-Evasion Branch of erstwhile Central Excise Commissionerate, Jaipur which revealed that they had passed on the cenvat credit on the basis of invoiced issued by the non-existent manufactures, fake invoices of some manufactures who actually had never issued said invoices and only invoices issued by some first stage dealers, without actual movement of any goods pertaining to said invoices. It was revealed that they had passed on cenvat credit to the appellant having Central Excise Registration Number AABCN8927BXM001 and engaged in the manufacture of M/s. Ignots, Angels, Channels, Flats ....
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....ort of the allegation that appellant has issued invoices without supply of goods. In support of this allegation there is only one evidence i.e. the statement of Shri Nitin Sanghi dated 23.07.2018 partner of the co-appellant here. The said statement also remained uncorroborated by any other evidence, therefore, the same is not acceptable. He further submitted that the appellant Nirmal Inductomelts (Appellant No. 1) has procured the inputs through the invoices issued by second stage dealer and the said inputs have been used in manufacture of the final product which has been cleared on payment of duty. No statement of any transporter has been recorded to allege that non receipt of the goods. In that circumstances, cenvat credit cannot be denied. 5. On the other hand, authorized representative submitted that the 7 show cause notices were issued but only one appellant has come forward. The manufacturers who were shown as manufacturer of the inputs have not paid duty, in that circumstances, cenvat credit is not available to the appellant. On the basis of the invoices issued by the second stage dealer. In that circumstance, cenvat credit cannot be allowed. 6. Heard the parties consi....
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....rved as under : "7. In the present case, both the Commissioner (Appeals) and the Tribunal have given cogent reasons to indicate that the assessee had taken reasonable steps to ensure that the inputs in respect of which he has taken the cenvat credit are goods on which the appropriate duty of excise, as indicated in the documents accompanying the goods, has been paid. Admittedly, in the present case, the assessee was a bona fide purchaser of the goods for a price which included the duty element and payment was made by cheque. The assessee had received the inputs which were entered in the statutory records maintained by the assessee. The goods were demonstrated to have travelled to the premises of the assessee under the cover of Form 31 issued by the Trade Tax Department, and the ledge account as well as the statutory records establish the receipt of the goods. In such a situation, it would be impractical to require the assessee to go behind the records maintained by the first stage dealer. The assessee, in the present case, was found to have duly acted with all reasonable diligence in its dealings with the first stage dealer. The view which the Tribunal has taken i....
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....filed by M/s. SK Garg & Sons which were accepted by the department. Therefore, in the absence of any corroborative evidence to show that the appellant have not received the goods, it cannot be alleged against the appellant that they have received the invoices and not the goods merely on the ground that there was no storage facility specifically when the landlord made a statement that the godown was let out to the dealer. In the case of M/s. Dhawan Steel Industries (supra), this Tribunal has examined the issue wherein M/s. SK Garg & Sons was the dealer who supplied the goods to M/s. Dhawan Steel Industries and case has been booked against M/s. Dhawan Steel Industries that they have not received the goods from M/s. SK. Garg & Sons. In that circumstances, cenvat credit was sought to be denied to M/s. Dhawan Steel Industries but this Tribunal after examining the issue held as under:- "4. After considering the submissions made by ld. AR and on perusal of the record, I find that the invoices issued by M/s. SK Garg and Sons giving details of manufacturers as well as manufacturer/supplier of the goods. No investigation was conducted at the end of manufacturer/supplier as well as t....