2025 (10) TMI 120

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....25(1) of the Central Excise Rules, 2002 read with Section 11AC of the Act and Rule 26(2) of the Central Excise Rules, 2002. 2. Briefly the facts of the present case are that the appellants are manufacturers and was registered with the Central Excise Regime; two separate show cause notices dated 23.07.2019 and 26.07.2019 were issued to the appellant for imposition of penalty under Rule 25(1) of the Central Excise Rules, 2002 read with Section 11AC of the Act and Rule 26(2) of the Central Excise Rules, 2002. 2.2 As per show cause notice dated 23.08.2019, M/s Punia Alloys Private Limited, Mandi Gobindgarh had purchased iron & steel scrap for the manufacture of steel ingots from various manufacturers/dealers including M/s Modi Alloys & Me....

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....As per the investigation, it has been established that the goods have not been received by M/s Modi Alloys which have been shown to be purchased by M/s Modi Alloys and further sold to different manufacturers/dealers, hence the cenvat credit availed and passed on by M/s Modi Alloys on the goods appears to be inadmissible and liable to be recovered from the units to whom such credit has been passed on including M/s Punia Alloys Private Limited, Mandi Gobindgarh. On the basis of same investigation, the show cause notices were also issued to M/s Punia Alloys Private Limited and to M/s Aar Kay Multimetals Pvt. Ltd. to disallow the Cenvat credit under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11A(4) of the Act by invoking the ext....

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.... the notification issued under these rules. In fact, the allegation of the revenue is that the appellant had not received the excisable goods. Further, he submits that there is no allegation of the revenue that the appellant had not accounted for any excisable goods produced or manufactured or stored by him. Further, there is no allegation of the revenue that the appellant was engaged in the manufacture, production or storage of any excisable goods without having applied for the central excise registration certificate. He further submits that it is a fact on record that the appellant was registered as manufacturers under central excise during the relevant period and there is no allegation that the appellant had contravened any of the provis....

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....tual supply of material has been inserted w.e.f. 01.03.2017 by inserting sub-rule (2) to Rule 26 of Central Excise Rules, 2002 with the issuance of Notification No. 8/2007-CE. As per the report of the jurisdictional authorities, the appellant's transactions with M/s Modi Alloys were found to be genuine and the same cannot be disputed based on allegedly fake dealings of this firm with other suppliers. He further submits that appellant actually supplied the goods covered by their excisable invoices to M/s Modi Alloys and had received the payment through banking channels and the authenticity of their sale transactions cannot be disputed solely based on irregularities or discrepancies in succeeding transactions of M/s Modi Alloys with M/s Punia....