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TMI Blog2014 (12) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... e in reality only an offence has been committed by making paper transactions but it is difficult to find any revenue loss. Nevertheless, as already observed by us, if the inputs are not received, according to statute, the appellant is not entitled to CENVAT credit. The normal assumption is that when inputs are not received and only paper transaction takes place, there would be revenue loss to the Government since input would have gone elsewhere but in this case, it is clearly not so since no inputs have moved from the beginning to the end. However, we cannot waive the requirement of balance amount of CENVAT credit which is yet to be paid by the two other group companies since to that extent inputs have not been received by the appellant who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Y. M. Drugs and Chemicals and goods under 5 invoices for CENVAT credit of ₹ 13,13,250/- to Pavan Drugs and Chemicals. Against both these manufacturing units who are sister companies of the appellant, proceedings have been initiated for recovering the CENVAT Credit availed by them without receiving the inputs and Department have recovered ₹ 50 lakhs from Y.M. Drugs and Chemicals and ₹ 6,56,625/- from Pavan Drugs and Chemicals according to the learned counsel. Both these units under 43 invoices transferred the invoices to Finechem who in turn showed as if they had sold the same to M/s. Reliance Cellulose, on the basis of which the appellant took the credit. On the basis of this, the learned counsel submitted that what has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hole transactions were on paper only and if we require the appellant to deposit the entire amount without taking into account the payments made by the group companies, we would be requiring the appellant to deposit an amount which is already collected by the Revenue, because of not receiving the input. When the two group companies deposit the amount, and when the appellant has taken the credit of the duty-paid on such goods, the cycle is completed and the goods have completed the cycle and therefore in reality only an offence has been committed by making paper transactions but it is difficult to find any revenue loss. Nevertheless, as already observed by us, if the inputs are not received, according to statute, the appellant is not entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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