2004 (8) TMI 291

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....s manufacture copper wire and super enamel copper wire and avail of MODVAT Credit of the duty paid on inputs, mainly copper rod/copper wire; that they used to send the copper rod to their job worker, M/s. SMI Electrowire (P) Ltd. in the same vehicle in which copper rods were received from the supplier without unloading in their factory under the job work challans; that the Central Excise Officers visited the premises of M/s. R.K. Enterprises, a registered dealer of copper rods and seized certain incriminating documents including invoices, Kachcha slips, numbering machines, rubber stamps of different parties and government agencies and G.R. books of different transporters; that Shri R.K. Gupta, Proprietor of M/s. R.K. Enterprises, in his sta....

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....the transaction is bogus; that the Appellants had purchased quantity less than 6 tons which is evident from the invoices and as such the allegation of the Department does not survive; that invoices issued by R.K. Enterprises were authenticated by the Central Excise Officers as required under the law and therefore no charge of not taking reasonable care by the Appellants to verify the identity of dealer can be levelled against the Appellants; that there is no evidence on record that no inputs has been received in their factory; that the Department had not investigated the matter fully as no enquiry had been made from the transporters; that the inputs were sent to their job worker who had sent back the same after carrying out the processes; t....

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....es to the Appellants for sale of copper rods. The question involved is whether the goods in question were actually sold or only invoices were provided to the Appellants for the purpose of availing the MODVAT credit. The entire case of the Department is mainly based on the statement of Shri R.K. Gupta, Proprietor of M/s. R.K. Enterprises, as no statement of Shri Deepak Kumar Gupta, Proprietor of M/s. Hindustan Metal, seems to have been recorded. In his statement, Shri R.K. Gupta has deposed that he trades in non-ferrous metals having a staff of four persons. He has given the names of firms whom he purchases the metals from as well as the name of his customers whom the metals are sold to by him. He has also mentioned that both payments are ma....