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2019 (5) TMI 1995 - CESTAT CHANDIGARHDenial of CENVAT Credit - levy of penalty - fake invoices - diversion of goods. Main allegation is that M/s Lok Nath Varinder Kumar Impex Limited has received the goods from the manufacturers, the said goods have been diverted to Himachal Pradesh units who are not required to take Cenvat credit and another invoice has been issued to the appellant namely, National Soap Mills to avail inadmissible Cenvat credit without accompanying the goods. HELD THAT:- In this case, investigation was conducted at the end of M/s National Soap Mills and no discrepancy in the stock was found, moreover, sample of inputs were drawn and sent to the laboratory for test but there is no wisper about the same in the show cause notice, allegation was made merely on the basis of the statement of the dealer that they have diverted the goods to Himachal Pradesh units but no evidence has been brought for record to show that the goods in question has not received by National Soap Mills. As no evidence on record to show that National Soap Mills have not received the goods or if goods were not received against the invoices in question from where National Soap Mills received the inputs to manufacture the goods which has been cleared on payment of duty. In that circumstances, Cenvat credit cannot be denied to M/s National Soap Mills, therefore, the case against National Soap mills is not sustainable. Accordingly, the impugned order qua National Soap mills is set aside. Penalty on M/s Lok Nath Varinder Kumar Impex Limited - HELD THAT:- The penalty has been imposed on a company which is jurisdic person on which penalty cannot be Imposed as held by this Tribunal in the case of C.C.E., ROHTAK, C.C.E., DELHI-III VERSUS NOVICE POLYMERS, AIRVISION INDIA PVT LTD, DR POLYMERS [2019 (1) TMI 1159 - CESTAT CHANDIGARH] relying on the decision of the Larger Bench of this Tribunal in the case of STEEL TUBES OF INDIA LTD. VERSUS COMMISSIONER OF C. EX., INDORE [2006 (10) TMI 146 - CESTAT, NEW DELHI [LB]], therefore, no penalty can be imposed on M/s Lok Nath Varinder Kumar Impex Limited. Appeal allowed.
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