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TMI Blog2017 (6) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... mis-declarations done by M/s AIPL as elaborated in preceding paragraphs, the penalty on M/s AIPL is fully justified. Appeal dismissed - decided against appellant. - E/1685/2009 & E/1825/2009 - A/60947-60948/2017-SM[BR] - Dated:- 31-5-2017 - Mr. Devender Singh, Member ( Technical ) None for the Appellant Sh. Satya Pal, A.R. for the Respondent ORDER Per: Devender Singh Despite notice, there is none for the appellants in Appeal No.E/1685/2009-EX[SM] and there is none for the respondent in Appeal No.E/1825/2009-EX[SM]. It is seen from the record that in the previous hearings on 21.02.2017, 28.03.2017 and 20.04.2017 the situation was same. It appears that appellants in Appeal No.E/1685/2009-EX[SM] and respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. It was also seen that the cenvat details given in ER-1 returns were not supported by purchases of copper scrap during the relevant months. M/s AIPL did not show any opening or closing balances of copper scrap in the ER-1 returns and RG-1 register. During the visit of Central Excise Officers on 03.02.2005, no furnace was found installed and the only machinery/apparatus installed in the factory was wire drawing machinery on which wires could be drawn from copper wire-rods. A panchnama was drawn and a statement of Sh. Parshotam Lal, an employee of M/s AIPL was recorded. In his statement dated 03.02.2005, Sh. Parshotam Lal stated as below: that except receiving of copper coil and sometimes plastic rolls and one or two drums of varnish, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... completely insufficient to run furnace, rolling machinery and wire drawing machines. Besides, no evidence regarding purchase and/or use of furnace oil has come to notice during the investigation. 4.4 Further investigation revealed that M/s AIPL were not maintaining proper record to show the account of receipt, transport, manufacture, sale, clearance of inputs and finished goods. The department made an enquiry with the Excise Taxation Department, Punjab and it was revealed that inputs which were supplied to M/s AIPL were not found entered in the data of Sales Tax Department. M/s AIPL had issued invoices to M/s AKI and M/s AKI availed cenvat credit to the tune of ₹ 25,67,069/- on the strength of invoices issued by M/s AIPL. The ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Copper Scrap 5113.400 ₹ 593155 ₹ 116 186/02.8.03 Copper Scrap 3128.000 ₹ 362848 ₹ 116 203/10.8.03 Copper Scrap 3113.000 ₹ 361108 ₹ 116 367/18.10.03 Copper ingots 3142.000 ₹ 364472 ₹ 116 No genuine business transaction can be done at the same price of raw material and finished goods and commercial ability. Truthfulness of such transactions is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enial of cross examination of Sh. Parshotam Lal has caused no prejudice to M/s AKI. 4.12 All the foregoing facts and evidence prove that no goods were supplied from M/s AIPL to M/s AKI. The fraud, suppression and willful mis-declaration are writ large on the nature of these transactions. 5. In view of the above, I do not find any infirmity in the order of Commissioner disallowing the credit and confirming the demand of ₹ 25,67,069/- along with interest and imposing penalty of equivalent amount under Section 11AC of Central Excise Act, 1944. 6. As for Appeal No.E/1825/2009-Ex[SM], wherein the Revenue is challenging the dropping of penalty against M/s AIPL, I find that the show cause notice had proposed the penalty under Rule 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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