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TMI Blog2014 (4) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... and goods were procured from open market. There could be no availment of Cenvat credit on fake invoices as it involves fraud. Fraud nullifies everything. Once it is proved that credit has been fraudulently availed on fake invoices, credit has to be reversed with interest for the period of its utilization. Commissioner (Appeals)s order justifying availment of credit and subsequent holding that interest is not required to charged does not have legs to stand as fraud is clearly manifested. I am also not able to agree with the findings that since goods were admittedly procured from open market, and receipt has not been disputed in the factory there did not arose any questions of charging interest - Decided in favour of Revenue. - Appeal N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the invoices issued by Registered Dealer in their name wherein the goods were shown to have been manufactured by M/s Pasondia Steel Profile Ltd., 28th Km. stone, Delhi Merrut Road Ghaziabad (hereinafter referred to *PSPL). Investigations proved that no manufacturing activity took place in PSPL from Dec 03 to Dec 05. 4. The fact of closure of production has been proved from the statement dated 19.6.2006 of Shri Upendra Goel, Director of PSPL given before the SIO, DGCEI, New Delhi, wherein he himself admitted that : (a) their electricity connection had been disconnected on 30.11.02. (b) since they had MOU with SAIL for lifting 54000 MT HR Coils but did not have the resources and capability to lift or process the same, they sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Ghaziabad and that as per their knowledge the HR Coils after cutting went in the open market through these persons. 7. Shri Manoj Jain, Properitor of M/s Rishav Trading Co., Navyug Market, Ghaziabad, the trader upon whom penalty was imposed by the adjudicating authority, on being confronted with the statement dated 19.06.06 of Shri Upendra Goel, Director of M/s Pasondia Steels and profiles Ltd., Ghaziabad, Sh. Jain in his statement dated 17.04.2009 confirmed the correctness of the same and stated that the goods shown as purchased under the bills of M/s Pasondia steel (CR Strip and CR Sheet) were actually purchased from the market through brokers and such procured goods were shown as manufactured by M/s Pasondia in the invoices issued b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilization of credit. Further, there are confessional statements confessing fraud. 11. Overwhelming evidence has also come on record. There could be no availment of Cenvat credit on fake invoices as it involves fraud. Fraud nullifies everything. Once it is proved that credit has been fraudulently availed on fake invoices, credit has to be reversed with interest for the period of its utilization. Commissioner (Appeals)s order justifying availment of credit and subsequent holding that interest is not required to charged does not have legs to stand as fraud is clearly manifested. I am also not able to agree with the findings that since goods were admittedly procured from open market, and receipt has not been disputed in the factory there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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