2026 (4) TMI 796

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....nd penalty against number of persons including the Appellant, on whom a penalty of Rs. 50,000/- has been imposed under Rule 26(2) of the Central Excise Rules, 2002 for his act of omission and commission and for helping the traders in selling excisable invoices without supply of goods. 2. Briefly stated facts of the present case are that an investigation was conducted on the premise that the scrap traders, namely, M/s Sai Steel Traders (in short of M/s SST), M/s Sai Multimetals (in short M/s SMM) and M/s Yashoda Traders (in short M/s YT) are the dealers of the scrap and scrap was being brought from Bhavnagar, Mandi, Gobingarh which is being sold to various rerolling units without cover of invoices in cash and invoices were issued to the v....

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....on steel ingots i.e. furnace units and re-rollable units (alleged that they have received goods without cover of invoices and various other people). On the basis of these statements, as well as, the documents recovered during the course of search, it has been alleged that the scrap dealers, namely M/s SST, M/s SMM and M/s YT are clearing scrap to the re-rollable units in cash without cover of invoices and issuing invoices to the furnace units without supply of goods and the amount received in cash from re-rollable scrap were paid to the furnace units after deducting their commission. Therefore, the furnace units are not entitled to avail cenvat credit. Correspondently, the same are recoverable from them and all the appellants are involved i....

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....e third party and the Appellant has not dealt with the goods and has no role in supply of the receipts of the goods and he was not responsible for delivery of the invoices without actual supply of the material as alleged in the impugned show cause notice. 6. Further, we find that the case of main noticee against whom the allegation of supplying the fake invoices without actual supply of the material, has already been decided by this Tribunal vide its Final Order No. 60932-60996/2019 dated 13.11.2019 wherein appeals filed by the noticees have been allowed and the impugned order has been set aside. 7. Further, we find that the perusal of the Rule 26 of Central Excise Rules, 2002, under which penalty has been imposed on the Appellant, pr....