2008 (10) TMI 157 - AT - Central Excise

Appellants availed Modvat credit on the basis of the invoices issued by registered dealer allegation of non receipt of inputs - summons were issued to the owner of the trucks, who did not respond and the address as available on the record is fake - appellants confirmed the transportation of the goods along with modvatable documents as well as recipient of payment in respect of these transport transactions however, Revenue had not disputed genuineness of truck nos. So, credit cannot be denied on the ground that the address of the truck owners available are fake

Summary

Issues:
Availment of Modvat credit on the basis of invoices without receiving the inputs.

Analysis:
The case involved the appellants availing Modvat credit based on invoices from a registered dealer without physically receiving the inputs. The Adjudicating Authority initially dropped the proceedings against the appellants for a demand of Rs. 91,229. However, the Revenue filed an appeal before the Commissioner (Appeals), which was allowed, leading to the appellants filing the present appeal.

Upon hearing both sides and examining the records, it was found that the appellants had availed credit amounting to Rs. 91,229 based on invoices from M/s. Majestic Industries Ltd., a registered dealer. The show cause notice revealed that the summons issued to the truck owners were unanswered, and the available address was deemed fake.

The Adjudicating Authority noted that the appellants confirmed the transportation of goods, supported by modvatable documents and payment receipts for these transactions. The Director of M/s. Majestic Industries Ltd. verified the actual transportation of goods, with proper entries in their records. The Authority also observed that the appellants supplied items to Public Sector Undertakings without any discrepancies.

However, the Commissioner (Appeals) overturned the Adjudication Order, citing fake addresses of the truck owners and admissions from transporters that they did not transport the goods. The Jt. CDR highlighted the statement of the Proprietor of M/s. Majestic Industries Ltd., indicating disputes with godown premises owners, but affirmed the genuineness of the truck numbers mentioned in the invoices.

Ultimately, the order of the Commissioner (Appeals) was set aside, and the Adjudicating Authority's decision was reinstated. The appeal was allowed, providing consequential relief to the appellants. The judgment was dictated and pronounced in open court on 21-10-2008.