2013 (11) TMI 955 - AT - Central Excise

Cenvat credit taken on invoices Regarding supply of scrap Held that - Octroi receipts issued by Khanna City Municipality do not show the consignor s name and no inquiry has been conducted with the drivers of the trucks - Commissioner Central Excise, Chandigarh Versus M/s Modern Alloys 2009 (11) TMI 66 - PUNJAB AND HARYANA HIGH COURT - it cannot be alleged that the goods covered under the invoices issued by registered dealer to the respondents have not been received by them but have been received in Khanna City there is no any merit in the Revenue s appeals Decided against Revenue.

Summary

Issues:
- Recovery of cenvat credit along with interest and penalties
- Allegation of no material supplied by dealer under the invoices
- Discrepancy in destination of goods covered by invoices
- Interpretation of previous judgments by Hon'ble Punjab & Haryana High Court

Recovery of Cenvat Credit:
The case involved the recovery of cenvat credit along with interest and penalties from the respondents, who had availed credit based on invoices issued by a registered dealer. The Department initiated proceedings for the recovery, leading to an adjudication order confirming the demands against the respondents. However, on appeal, the Commissioner (Appeals) set aside the order, prompting the Department to file appeals challenging this decision.

Allegation of No Material Supplied:
The crux of the issue revolved around the allegation that no material was supplied by the registered dealer under the invoices to the respondents. The Department contended that the goods covered by the invoices were sent to buyers in Khanna City, as indicated by octroi receipts. This discrepancy formed the basis for the Department's argument to recover the cenvat credit and impose penalties.

Discrepancy in Destination of Goods:
The Department argued that the goods covered by the invoices issued by the dealer were actually received by parties in Khanna City, as evidenced by octroi receipts. However, the Tribunal noted that the octroi receipts did not specify the consignor's name and lacked inquiry with the truck drivers. Citing previous judgments by the Hon'ble Punjab & Haryana High Court, the Tribunal held that the mere presence of octroi receipts was insufficient to prove that the goods were not received by the respondents but sent to Khanna City.

Interpretation of Previous Judgments:
Both parties referenced previous judgments by the Hon'ble Punjab & Haryana High Court in similar cases to support their arguments. The Department highlighted a Tribunal judgment in favor of the respondent that was challenged in the High Court but not accepted by the Department. Conversely, the respondent's counsel cited judgments where the High Court ruled in favor of the respondents based on identical facts and issues, emphasizing that the Revenue's appeals lacked merit.

In conclusion, after considering submissions from both sides and examining the records, the Tribunal dismissed the Revenue's appeals, citing the precedent set by previous judgments and the insufficiency of evidence to support the Department's claims regarding the destination of the goods covered by the invoices.