TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1707
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....rvey No. 370, Bhimasar, Kutch who were engaged in manufacturing of C.R. Coils/sheets, Galvanised Plain (GP) Coils/Sheet, Galvanised Corrugated (GC) Sheets, Cold Rolled Continuously Annealed (CRCA) Coils-Sheets all under chapter 72 of the Central Excise Tariff Act, 1985. An investigation was undertaken by the department against this unit on 30th July, 2009 wherein the officers found that the unit has availed Cenvat credit of Rs. 3,52,31,911/- during the period from May, 2009 to December, 2010 on C.R. Coils/sheets received from M/s. KEPL for so called job work which was found not correct as per the provisions of the Cenvat Credit Rules, 2004. The allegation was that the above Cenvat Credit was availed on their own invoices issued in favour of M/s KEPL without actual transfer of the material to the buyer. After completing the investigation, the department issued show cause on 3rd June, 2014, which was subsequently taken up for adjudication. The learned Commissioner decided the show cause notice wherein he confirmed the demand of Cenvat credit of Rs. 3,52,31,911/- alongwith interest under the relevant Provisions of the Central Excise Act, 1944 read with Cenvat Credit Rules, 2004 (herei....
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....yer and the name and address of the buyer of the said trader as "consignee". Their unit has been audited from time to time and therefore, larger period is not invokable in the case. As no allegations are there against the present appellants, penalty imposed on them under Rule 26 of the Central Excise Rules, 2002 is bad in law which they pray to set aside. They placed reliance on the following judgments:- * PUISSANCE DE DPK Vs. C.C.E., CHENNAI-2010-TIOL-672-CESTAT-MAD. * C.C.E. (APPEALS), VAPI Vs. VAPI PAPER MILLS LTD. 2009 (234) E.L.T. 538 (Tri.-Ahmd.) * C.C.E., VADODARA Vs. PAB ORGANICS PVT. LTD. 2012 (286) E.L.T. 621 (Tri.-Ahmd.) * KINETIC ENGINEERING LTD. Vs. C.C.E., PUNE-III. 2009 (246) E.L.T. 283 (Tri.-Mumbai) 3. During hearing, learned Advocate highlighted the provisions of Rule 9 of the Cenvat Credit Rules, 2004 and various judgments to impress that there is no restriction on availment of Cenvat credit on own invoices. He highlighted the Provisions of Rule 26 of the Central Excise Rules, 2002 to impress that his clients are not liable to penalty under this rule. He produced copy of the Job work agreement between M/s. ISCL and M/s. KEPL and highlighted that transacti....
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....4(6) of the CCR, 2004 has also not been followed which provides that the Jurisdictional Deputy /Assistant Commissioner having jurisdiction over the factory of manufacturer of final products who has sent the inputs or partially processed inputs outside his factory to a job worker, may, by an order allow final products to be cleared from the premises of the job workers subject to such conditions as specified by him. Both the appellants have admitted that M/s. KEPL do not have any godown or any storage place and CRCA Sheets manufactured on Job work basis are directly dispatched to their buyers from the premises of M/s. ISCL. Learned AR justified imposition of penalty on the appellants by the lower authority as the transactions between M/s ISCL & M/s KEPL were merely on paper and there was no physical movement of goods. 5. We have considered the rival submissions. We find that the issue of imposition of penalty on appellants is closely related to availment of Cenvat Credit by M/s. ISCL on their own invoices. As this company had gone to NCLT for liquidation, the Tribunal dismissed appeal of the party vide order No. 12669/2023 dated 29.11.2023 treating the appeal as infructuous. Thus, o....
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....Rules, 2002; or (b) a supplementary invoice, issued by a manufacturer or importer of inputs or capital goods in terms of the provisions of Central Excise Rules, 2002 from his factory or depot or from the premises of the consignment agent of the said manufacturer or importer or from any other premises from where the goods are sold by, or on behalf of, the said manufacturer or importer, in case additional amount of excise duties or additional duty leviable under section 3 of the Customs Tariff Act, has been paid, except where the additional amount of duty became recoverable from the manufacturer or importer of inputs or capital goods on account of any non-levy or short-levy by reason of fraud, collusion or any willful misstatement or suppression of facts or contravention of any provisions of the Excise Act, or of the Customs Act, 1962 (52 of 1962) or the rules made there under with intent to evade payment of duty. Explanation. - For removal of doubts, it is clarified that supplementary invoice shall also include challan or any other similar document evidencing payment of additional amount of additional duty leviable under section 3 of the Customs Tariff Act; or (c) a bill of en....
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....enalty on both the appellants under Rule 26 of the Central Excise Rules, 2002 which is reproduced as under:- "Penalty for certain offences. RULE 26. - [(1)]Any person who acquires possession of, or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confiscation under the Act or these rules, shall be liable to a penalty not exceeding the duty on such goods or [two thousand rupees], whichever is greater. [Provided that where any proceeding for the person liable to pay duty have been concluded under clause (a) or clause (d) of sub-section (1) of section 11AC of the Act in respect of duty, interest and penalty, all proceedings in respect of penalty against other persons, if any, in the said proceedings shall also be deemed to be concluded.] [(2) Any person, who issues - (i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take ....