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TMI BlogFake Purchase InvoicesX X X X Extracts X X X X X X X X Extracts X X X X ..... There is a Corrugated Boxes Manufacturing Company.-called A-first Party. And there is a Ignots manufacturing-( called B)Company for which the Raw Material is MS Scrap. The Company B receives Fake Purchase Invoices from the Company A, i.e., receipt of Invoices and not receipt of MS Scrap. The Commodity involved is NON-CENVATABLE. What penal action can be taken on the Company A in the light of Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Laws???????.....ALL THE TRANSACTIONS ARE FAKE. - Reply By Pradeep Khatri - The Reply = Well, according to my knowledge any scrap is Excisable w.e.f. 01-04-2008 due to change in the definition of the goods under Central Excise Laws. Issuing fake invoices amount to an offence. Penal actions will be taken by the Department. - Reply By Siraj Shaikh - The Reply = When the MS Scrap is purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the local delaer not regsitered with the Excise Authorities, the Scrap becomes Uncenvatable, ie., Unregistered Dealer cannot charge Excise Duty.....Hence, it becomes Uncenvatable. So, my query is that when a Corrugated Boxes manufacturing company supplies Fake invoices of MS Scrap to the the Ignots Manufacturing company, what would be the penal course of action on Corrugated Boxes Manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring Company?? - Reply By Pradeep Khatri - The Reply = Following concequences may be the aftermath of issuing the Fake Invoices, viz:- Directors and every concerned employees may be issued with a SCN and personal penalties may be levied by the Department. Registration Certificate may be cancelled. CENVAT credit may be disallowed and penal actions may be initation against the buyer for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollaboration in the offence. Interest @ 18% may be imposed. Directors of the companies may be sent to Jail. Penalty equal to the loss of revenue to the Revenue Department may be levied. In the nut shell, penal actions will be dependent on the gravity of the matter and allegations freezed in the SCN and defence of the assessee. - Reply By MANDAVILLI RAMAKRISHNA - The Reply = at firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, be advised, never post such fake issues, because you may be given a notice to tell which company is doing this. second thing, department will not bother if the selling dealer pay duty on the value of goods sold by him. - Fake Purchase Invoices - Query Started By: - Siraj Shaikh Dated:- 26-5-2012 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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