2007 (9) TMI 640 - AT - Central Excise

Summary

Issues involved: Alleged contravention of cenvat credit provisions based on bogus invoices.

Summary:

Issue 1: Cenvat Credit Contravention
The appellant, a steel forging manufacturer, was alleged to have taken cenvat credit based on five bogus invoices issued by another party. Excise Officers found discrepancies in stock records and recovered invoices not accounted for in the register. Adjudicating authority held transactions as fictitious, denying credit and ordering recovery of modvat credit along with penalties. The Appellate Commissioner upheld the denial of credit and penalties on the manufacturer and authorized signatory, while setting aside the penalty on an employee.

Issue 2: Fictitious Transactions
The sole proprietor of the party issuing bogus invoices was found to have provided fake registration numbers of non-transport vehicles on invoices. The Appellate Commissioner upheld the denial of modvat credit and penalties, considering the transactions as fraudulent.

Key Points:
- Evidence revealed discrepancies in stock records and non-transport of goods to the manufacturer.
- Appellate Commissioner upheld denial of credit and penalties based on fraudulent transactions.
- Legal representative cited precedents to support the decision.
- Statements of the authorized signatory confirmed discrepancies in transactions and transport details.
- Authorities justified recovery of modvat credit and penalties based on fraudulent evidence.
- Appeals were dismissed, and the impugned order was upheld without interference.