9911796707
TMI Blog2015 (10) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... icers visited the assessee's factory. During the course of stock verification of the finished goods and raw materials, it was found shortage of 75.445 MT of finished goods and 14.575MT of raw materials and also seized the documents and recorded the statements of various persons. 3. A show cause notice dated 31.7.2007 was issued to the assessees and other persons proposing demand of duty alongwith interest and to impose penalties. The adjudicating authority confirmed demand of Central Excise duty of Rs. 29,24,793/-, as already deposited by them and to recover the balance amount of duty Rs. 5,51,292/- from the assessee alongwith interest and also imposed penalty of equal amount of duty, under Section 11AC of the Central Excise Act, 194 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm, is not justified. He relied upon on the decision of the Hon'ble Gujarat High Court in the case of CCE vs. Harish Maganbhai Patel - 2010 (255) ELT 71 (Guj.). He also relied upon the decision of the Hon'ble Gujarat High Court in the case of Exotic Associates vs. CCE 2010 (252) ELT 49 (Guj.) in respect of exercising option of payment of penalty of 25% of the duty within 30 days from the communication of the adjudication order. 5. Regarding the appeal filed by the Revenue, the learned Advocate relied upon the decision Hon'ble Gujarat High Court in the case of Pravin N. Shah vs. CESTAT 2014 (305) ELT 480 (Guj.). He submits that the appeal against the supplier can not be maintained as the Revenue has not initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Settlement Commission. Learned Advocate submits that in that case, the supplier admitted the clandestine removal of the goods. Rule 9 (1) (b) of the Cenvat Credit Rules, 2004 provides that on supplementary invoices issued by a manufacturer would not be eligible for CENVAT credit for the reason of fraud, collusion or any wilful misstatement or suppression of facts or contravention of any provisions of the Excise Act, with intent to evade payment of duty. In the present case, the supplier paid the duty and issued supplementary invoices to the assessee whereby a short levy by reason of fraud, collusion or misstatement or suppression of fact with intent to evade payment of duty. So, the assessee is not eligible to avail CENVAT credit. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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