2019 (1) TMI 63 - HC - Central Excise

CENVAT Credit - bogus purchase of raw material - Lead Ingots - Held that - The Excise Authorities and the Tribunal have concurrently come to the conclusion that the goods in question were never received by the assessee in its factory and therefore, the assessee s claim of having consumed the same was not genuine - These findings are pure findings of facts. No question of law arises. Appeal dismissed - decided against appellant.

Summary

Issues:
Claim of bogus CENVAT credit on purchased goods not received by the assessee. Rejection of contention by the adjudicating authority. Dismissal of appeal by the Appellate Commissioner. Tribunal's confirmation of demands and rejection of explanations provided by the assessee regarding discrepancies in vehicle numbers.

Analysis:
The case involved a show cause notice issued to the appellant - assessee regarding the recovery of CENVAT credit for goods not received. The department alleged that the assessee had claimed bogus credit for purchasing Lead Ingots from a supplier in Jammu & Kashmir, which were never received by the assessee. The adjudicating authority rejected the assessee's contention that the goods were received and consumed in the manufacturing process, confirming the demands based on the inability to establish receipt of goods.

Upon appeal to the Appellate Commissioner, the assessee reiterated their stance and submitted additional documents, but the appeal was dismissed. The matter was further appealed to the Tribunal, which upheld the lower authorities' decisions. The Tribunal not only confirmed the findings but also examined the assessee's explanation for discrepancies in vehicle numbers, attributing them to possible breakdowns. However, the Tribunal found this explanation improbable, stating that breakdowns in all vehicles were highly unlikely.

After reviewing the documents and arguments, the High Court found no error in the decisions of the Excise Authorities and the Tribunal. It was concluded that the goods in question were never received by the assessee, rendering the claim of consumption invalid. The Court emphasized that these were factual findings with no legal question arising, leading to the dismissal of the appeal.

In summary, the judgment upheld the lower authorities' decisions, emphasizing the lack of receipt of goods by the assessee and dismissing the appeal based on the factual findings. The Tribunal's rejection of the assessee's explanations regarding discrepancies in vehicle numbers was deemed reasonable, leading to the final dismissal of the appeal by the High Court.