9911796707
TMI Blog2006 (1) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... tatements of the various persons recorded during the course of investigation. As such, we do not find any force in the appellants plea of the demand being barred by limitation. It is further seen that in the said decision of IDL Chemicals Ltd.R [ 1996 (7) TMI 337 - CEGAT, CALCUTTA] . The Tribunal observed that the credit taken on the basis of the fake and non genuine duty paying documents is required to be reversed. Accordingly, we are of the opinion that the reversal of credit by M/s. AIA Engineering Pvt. Ltd. and Bhagwati Autocast Ltd. is justified. However, we find that the said reversal was made by the appellants during the course of investigation itself except by M/s. Bhagwati Autocast Ltd. Taking all these facts into account, we reduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Ahmedabad vide which he has denied benefit of Modvat credit to the manufacturing units M/s. AIA Engineering Pvt. Ltd., M/s. Reclamation Welding Pvt. Ltd. and M/s. Bhagwati Autocast Ltd. on the ground that they have availed Modvat credit on the basis of invoices issued by the dealers without actually receiving the inputs. In addition personal penalties have been imposed upon the said manufacturers along with imposition of personal penalties of varying amounts on other appellants in terms of the provisions of Rule 26 of Central Excise Rules, 2001 and 2002. 2. We have heard Shri R.S. Dinkar the ld. Advocate appearing for the appellant and Shri U.H. Jadhav the ld. JDR appearing for the Revenue. 3. As a consequence of intelligenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estigation that the vehicle numbers shown in the invoices issued by M/s. New Siddhi Vinayak Re-roiling Mills for transportation of the goods to their dealers was the numbers of the passenger bus, car, tanker, taxi, auto rickshaw, mini truck etc. which were incapable of transporting the use materials. 5. Inasmuch as, the waste and scrap was received by the three manufacturing units, statements of their representatives were also recorded and it was found that the invoices received by them from various dealers was without actual movement of the goods. The scrap actually obtained by these manufacturing units was Bazar scrap whereas the invoices showed them otherwise. It was also revealed that manufacturing units were aware of the facts th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted position that the factory of M/s. New Siddhi Vinayak Ltd. was closed during the relevant period in question and no manufacturing activity was being undertaken had their premises and no waste and scrap was originated at their end. The above stand by the Revenue is further corroborated by the statement of the dealers as also by the statements of the representatives of the manufacturing unit who admitted to the allegations and also reversed the credit during the course of investigation. 8. Similarly, we find that the appellants reliance on the Tribunal's decision in the case of IDL Chemicals Ltd. v. Commissioner of Central Excise, Bhubaneshwar [1996 (88) E.L.T. 710 (Tribunal)] is not correct inasmuch as in that case it was held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty, when the dealers have not physically dealt with the goods and there are no goods involved which are liable to confiscation. Ld. Advocate contends that the provisions of Rule 26 of Central Excise Rules, 2002 are pari materia to Rule 209A of the erstwhile Central Excise Rules. Admittedly, there are no goods involved, which are liable to confiscation inasmuch as the Revenue's own case is that the no inputs were supplied under the cover of the invoices. In the said scenario, the above decision of the Tribunal is fully applicable. We, accordingly set aside the penalties imposed upon the other appellants under the provisions of Rule 26 of Central Excise Rules. All the appeals disposed of in above terms. (Pronounced in Court on 13-1-2006) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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