2009 (4) TMI 150 - AT - Central Excise

Modvat / Cenvat Denial of credit forged documents held that - If no job workers existed at the address given in the invoice, it is inconceivable as to how Pig Iron/Skull was converted into castings, as contended by the appellant. This fact, itself, leads to inevitable conclusion that no inputs were ever sent to job workers - The modus operandi adopted by the said appellant were revealed by him in his various statements. The payment made to M/s. R.M. Enterprises, who either himself issued the invoices as also arranged from M/s. Usha Ispat Ltd. and M/s. Hem Sales, were made by them through cheque, but the amount was subsequently received back from M/s. R.M. Enterprises in cash demand with penalty upheld

Summary

In the judgement by the Appellate Tribunal CESTAT, Ahmedabad, the case of M/s. Piyush Engineering Works was heard. The appeals were disposed of by a common order arising from a previous order passed by the Commissioner (Appeals). The company was engaged in manufacturing I.C. Engines and availing Modvat credit on inputs. Central Excise officers conducted checks and found discrepancies in the stock of forged cranked shafts and other inputs. Investigations revealed that the company was issuing job work challans for non-received inputs to avail Cenvat credit. Statements from various individuals confirmed the unauthorized Modvat credit and the fictitious transactions between the company and other entities. The tribunal upheld the demand against M/s. Piyush Engineering Works and imposed penalties. The penalty on Shri A.R. Patel was set aside based on a previous tribunal decision, and the penalty on M/s. S.D. Enterprises, Mumbai was also set aside due to the scope of the proceedings. The penalty on Shri Kantilal D. Sidpara was set aside for preparing fake job work challans. The appeal by M/s. Piyush Engineering Works was rejected, while the appeals by Shri Amrutlal R. Patel, Shri Deepak Agarwal, and Shri Kantilal D. Sidpara were allowed with consequential relief. The judgement was pronounced on 8-4-2009.