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TMI Blog2017 (11) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... lly received in the factory but merely basing upon the invoices issued by various suppliers. The Director of the appellant-company, Shri Nainar, admitted that they had diverted the goods into the local market for higher price and that such inputs were not used for manufacture of PVC pipes. The Chief Executive, Shri Ramadoss, of M/s. Shree Mahaveer Impex who is one of the supplier of the appellant deposed that out of 54 MTs of PVC resins imported, only 10 MTs were supplied by him to the appellant and the balance quantity of 44 MTs were disposed by him though invoices were raised for entire 54 MTs in the name of the appellant. It was also found that the appellant had issued two sets of invoices containing the same numbers and had accounted on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand on finished goods removed clandestinely or the penalty thereon. It is also submitted by him that the appellant is not disputing the statement of Shri Ramadoss of M/s. Shree Mahaveer Impex who has supplied raw material by issuing invoices to the quantity of 54 MTs. (b) That no evidence has been adduced by the department to justify that credit was taken without actual receipt of inputs. Out of the three suppliers two of them had categorically stated that they had actually supplied the inputs and that they had received payment from the appellant. This is reflected in para 4 of the show cause notice. Only the third supplier M/s. Shree Mahaveer Impex has admitted to have supplied 10 MTs of inputs by raising invoices for supply of 54 MTs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared (in Nos.) Qty. cleared (63 mm & 110 mm) @ 85:15 PVC resin as per CENVAT register Qty. of PVC required for 2 dia pipe @ 2.8 kg. per length Qty. of PVC required for 4pipe @ 7.8 kg. per length Total PVC Qty. required Prodn. Waste 63mm (2 dia) 110mm (4 dia) 93264 79280 13984 323450 221984 109075 331059 24736 (7%) (g) That from the above Table, it would show that the appellants required 323450 Kgs. of PVC resins to produce 93624 PVC pipes. The appellant has accounted 323450 in their input register and therefore the allegation that the appellant has not accounted the inputs correctly and has availed credit merely on invoices without receipt of inputs into the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved in the factory. Though purchase invoices showed 165450 Kgs. of PVC resins to have been received, the same was not reflected in the inward register, raw material register and in the factory daily report. The director of the company Shri S. Nainar was summoned to offer his explanation and wide statement 13.7.2010, he deposed that the above quantity of raw materials were not received by them but had taken CENVAT credit on the invoices. The statements of suppliers namely M/s. Shree Mahaveer Impex and M/s. Swastik Pumps were also recorded. M/s. Shree Mahaveer Impex has categorically deposed that out of 54 MTs of PVC resins imported by them only 10 MTs were supplied to the appellant and the balance quantity of 44 MTs were disposed thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended period of limitation. The officers visited the premises on 11.12.2009 and thereafter statements were recorded and after completion of the investigation, show cause notice has been issued invoking extended period as it is revealed that the appellant has willfully suppressed facts and also mis-represented the same especially having raised parallel invoices with the intention to evade payment of duty. Thus, invocation of extended period is legal and proper. 4. Heard both sides. 5. The main contentions raised by the ld. consultant is two-fold. Firstly, that the appellant has availed CENVAT credit on the actual inputs received in the factory and that has been entirely accounted by them. Secondly, that the department has not been able to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also admitted that though 54 MTs of PVC resins was shown in the invoices by Sree Mahavir Impex, only 10 MTs was received in the factory and appellant has availed credit on entire 54 MTs of inputs. These facts stand undisputed by the appellant. On such score, the claim of the appellant basing upon certain calculations with regard to input output ratio, adopting ISI norms cannot be considered as cogent evidence so as to hold that the appellants have not availed wrongful credit. On the background of admission of issuance of double set of invoices, the suppression of facts, willful mis-statement with intent to evade duty is also established, for which reason I find that the invocation of extended period is also justified. It may be true that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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