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TMI Blog2015 (2) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... that is built around it. 2. Whether the preponderance of evidences and probabilities in this case establish the commission, by the respondents, of the offences alleged in the show cause notice and whether the Tribunal was correct in ignoring such preponderance of evidences and probabilities in passing their order against the appellants." Counsel for the appellant submits that Shri R.K.Gupta, proprietor M/s R.K. Enterprises admitted that he indulged in bogus transactions and passed MODVAT/CENVAT credit by issuing invoices without actually transferring goods. Upon inquiry it was established that Shri R.K.Gupta did not possess any godown, was operating from residential premises and his office in Farbidabad was a one room tenement without any infrastructure. The inquiry also revealed that slips, GR books, numbering machines and blank cheques, taken into possession were accepted by Mr.R.K.Gupta to be false. The GR books of M/s Paradise Tempo Transport Service, Bata Chowk, Faridabad and Golden Transport Company, Nehru Ground, NIT Faridabad, were accepted as forged as it was admitted that these transport companies do not exist. The rubber stamps pertaining to the department, invoice boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nes were valid transactions. The onus, therefore, lay upon the appellant to prove that the invoices and GR receipts etc. did not reflect valid transactions. The adjudicatory authority apart from raising general inferences has not recorded any clear finding against the appellant. The CESTAT has, therefore, rightly set aside the original order as well as the order in appeal and exonerated the appellant. We have heard counsel for the parties, perused show cause notice dated 23.01.2004, order in original dated 27.01.2006, order in appeal dated 30.04.2007 and order dated 27.07.2009, passed by the CESTAT. The appellant, unearthed a fraud allegedly perpetuated by one Shri R.K.Gupta, proprietor M/s R.K.Enterprises whereby MODVAT/CENVAT credit was passed on without any actual transaction. A search of the residential premises of Shri R.K.Gupta led to recovery of voluminous incriminating evidence in the shape of slips, fake GR books, numbering machines, blank cheques, stamps of various officers of the department and it also transpired that the alleged office in Faridabad was a single room rented out by Shri R.K.Gupta without any godown from where he could have transferred these goods. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transport companies namely Paradise Tempo Transport Service and Golden Transport Company are fake and, therefore, held against the respondent by disallowing CENVAT credit of Rs. 2,43,024/- and imposing penalty of an identical amount and a penalty of Rs. 10,000/- on Deepak Kumar Jain, director of the respondent. Aggrieved by the above order, the respondents filed appeals. The Commissioner of Central Excise (Appeals) Delhi-III dismissed the appeals by holding as follows:- "9. Scrutiny of records recovered from the office cum residence of Sh.R.K.Gupta revealed that the said M/s RKE had been issuing fake G.Rs (transport documents) to cover the bogus transactions i.e. actual delivery of the goods covered in the invoices were never effected and in order to give authenticity and credibility to such transaction, the aforesaid G.R. Books were used in selling as well as purchasing in bogus transactions as was evident from the blank G.R.Books of the non-existent transport companies namely M/s North India Transport Co. Bata Chowk, Faridabad and M/s Golden Transport, Nehru Grount, NIT, Faridabad. 10. The appellant has not produced any evidence before me regarding the actual receipt of input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were not named as beneficiaries of fraudulent MODVAT/CENVAT credit. The respondents came into the picture only after various invoices and accounts of Shri R.K.Gupta were checked and it was found that goods had been delivered to the respondents namely;- invoice No.65, dated 07.02.2000, No.75, dated 11.02.2000, No.93 and No.94 dated 13.03.2000, No.45 dated 06.07.2000 and on that basis they had availed MODVAT credit. The respondents stated that the goods were actually received by them and submitted copies of G.R.No.9798, dated 07.02.2000, No.9828, dated 11.02.2000, No.9858 dated 13.03.2000 of Paradise Tempo Transport Service, Bata Chowk, Faridabad and GR No.923 of Golden Transport Co., Nehru Ground, NIT, Faridabad. Admittedly, the transactions are less than six metric tonnes and goods were transported by Paradise Tempo Transport Service and Golden Transport Company. The order in original clearly records that Shri R.K.Gupta has stated that Paradise Tempo Transport Services and Golden Transport Company are non-existent. The statement made by the respondents is that the goods received were transported by these transport companies. The respondents were, therefore, required to prove th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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