9911796707
TMI Blog2017 (9) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... n auction. Independent auctioneer are participating in bidding and after succeeding in the bidding they purchased the said goods in auction. On the investigation it was unearthed that the goods purchased on auction, invoices are made in the name of M/s. Chandra Ispat Limited whereas material is transported to Viramgam based dealer/supplier in collusion with transporter/brokers. As regard the invoices issued in favour of M/s. Chandra Ispat Limited, payment have been made through cheque against which cash were sent to the brokers through angadia services. M/s. Chandra Ispat Limited procured commercial scrap(sevanger scrap) in lieu of HRT for manufacture of M.S. Ingots which do not suffer any excise duty. After detailed investigation the case was made out wherein Cenvat credit was proposed to be denied to M/s. Chandra Ispat Limited and penalties under Rule 26 was proposed on the present appellants. The adjudicating authority confirmed the demand of Cenvat credit and imposed penalties on the appellants under Rule 26. Appellant filed appeals bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates the findings of the impugned order. He further submits that on this issue much water has been flown as in common investigation various cases were made out on the facts that invoices issued by M/s. Ispat Industries and JSW Steel Ltd various persons have availed fraudulent Cenvat credit without receipt of input (scrap) covered under the invoice which were diverted to Viramgam based dealer. In such case this tribunal has confirmed the demand and penalties. He placed reliance on the following judgments: (a) Amar Ispat Pvt Ltd Vs. Commissioner of Central Excise, Thane-I[2016-TIOL-845-CESTAT-MUM] (b) Master Traders Vs. Commissioner of Central Excise Thane-I[2016-TIOL-2654-CESTAT-MUM] (c) Bhagwati Steel Cast Ltd. Vs. Commissioner of Central Excise, nashik [Order No. A/1950-1967/15/EB(Tribunal)]. 5. I have carefully considered the submissions made by both sides and perused the record. 6. On going through the facts of the present case, I find that it is case of fraudulent Cenvat credit availed on the invoices issued by M/s. Ispat Industries Ltd and M/s. JSW Steel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the supplier. We are not convinced with such argument. First of all, payment through banking channel in such manipulated transactions is a part of the manipulation only and it does not prove genuineness of the transaction. We are unable to understand that how the appellant is not able to produce any document relating to transport or receipt of the goods such as goods receipt note, independent weighment slip, gate register lorry receipt, payment receipts (which are normally given by the drivers of such vehicles) or any document of the transporter to prove that the goods covered by the invoices did travel from Jindals' units in Vasind and Tarapur to appellant's factory. We also note that almost in all transactions, the vehicle registration numbers are of Gujarat It is a common knowledge that a vehicle registered in Gujarat cannot undertake the freight movement from one place to the other within the State of Maharashtra. Such vehicle can only take the interstate freight, i.e. Maharashtra to Gujarat in this case. Moreover, HR trimmings in coil form are very different from bazaari/scavenger scrap and can be distinguished by any person in the business. 9. In the present case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1308745 21.11.03 4 Jindal Iron and Steel Co. Tarapur 13102274 5.7.03 5 Jindal Iron and Steel Co. Tarapur 13103087 1.8.03 6 Jindal Iron and Steel Co. Tarapur 1207371 12.8.03 7 Jindal Steel & Alloys Ltd. Vasind 1207371 17.12.02 8 Jindal Steel & Alloys Ltd. Vasind 1207731 28.12.02 Many of these are in addition to the statements, as against this the appellant was not able to produce any evidence regarding transport any receipt of the goods in respect of any of the invoices. In our considered view, the only conclusion to be drawn is that the goods have not been received by the appellant. 9.1 It also defies any logic that the goods such as HR trimmings in the coil form which pan be used for the manufacture of items like nails or wires, would be used for I melting in the furnace. Even the prevailing prices of such HR trimmings will be much higher compared to normal iron and steel scrap and it does not make any economic sense for a manufacturer to use HR trimmings in coil form for purpose of melting. 10. The learned counsel for the appellants' main grievance is relating to non-permission of cross-examination by the adjudicating authority. We find in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... variations are not fatal in the facts and circumstances of the present case. It is a common knowledge that the persons who are familiar with the excise laws and are aware about the violations of excise law, they are indulging in them they do not disclose proper and true facts at the first instance and they tend to give at times misleading explanations. In the present case also, generally the co-noticees have said in the statements after assessing the information already available with the investigating officers. In the later statements when they were shown more details, they came out with correct facts. We also note that the above modus operandi relating to diversion of HR trimmings to Viramgam and selling of the invoices to various iron and steel furnace units was done by number of steel furnace units and with reference to number of producers of HR coils /trimmings and the statements of various persons particularly the brokers in Mumbai, transporters in Mumbai/Nagpur and the traders based in Viramgam have been recorded by Central Excise Intelligence and with reference to other cases. These persons are common in all such investigations. Few days back, we have decided a similar case ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
