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TMI Blog2017 (12) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... made on the presumption that M/s. Sanmati Steel Pvt. Ltd. was requiring a particular grade of rounds as per requirement of its buyer – Railways. As the appellants herein have sold them rounds, which also includes some other grade of rounds, the whole transaction is presumed fictitious and accordingly penalty are being imposed on the appellants. Penalty on Director U/R 26 - Held that: - Although it has been admitted by the Director of M/s. Sanmati Steel Pvt. Ltd. Mr Vinod Kumar Jain that he have indulged in procuring other goods other than specified by Railways from Daga Trading Company but it is not the case of the Director of M/s. Sanmati Steel Pvt. Ltd. that they have not received goods from M/s. Daga Trading Company - the allegation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eel Co. Ltd. and Upper India Steels, Ludhiana. Based on intelligence that M/s. Sanmati Steel Pvt. Ltd. was showing fraudulent purchase of excess raw material, enquiry and investigation was conducted in the matter. Panchnama proceedings were done in the premises of M/s. Sanmati Steel Pvt. Ltd. on 29/03/2010 and on which date, statement of Shri Vinod Kumar Jain, Director of M/s. Sanmati Steel Pvt. Ltd. was also recorded. Follow up search was also done in the premises of these appellants namely, Daga Trading Company Private Ltd. on 08/04/2010 and certain documents were resumed under panchnama and statement of Shri Ramesh Kumar Daga, Director of M/s. Daga Trading Co. was also recorded on the same day, wherein he stated that they are trading in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Ltd. After perusing the record, he identified the purchase invoices of Daga trading Company Private Ltd. in respect of rounds and on the basis of these purchase invoices, further entries relating to sale of such rounds had been made in their RG 23 register and other sales records. On the basis of such information, Central Excise officers had prepared some chart in respect of details of purchases by M/s. Sanmati Steel Pvt. Ltd. from Daga trading for the period 01/04/2005 to 31/03/2010 wherein Daga Trading had passed on Cenvat credit amounting to ₹ 5,90,517/-. It was also noticed by the officers that the tariff heading of round 20.64 MM 55 Si7 is 7228.3029, while tariff heading of rounds of other sizes of grade IES 2062 is 7214.9990 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /09/2010 of Shri Vinod Kumar Jain, wherein it is stated that the list of supplies made by Daga Trading Company and M/s. Jagdamba Steels to them during the period April 2005 to March 2010, is a complete list and that list has been signed by him on 20/08/2010 in token of having seen the same and he agreed to deposit the Cenvat amount wrongly availed on the invoices mentioned at serial number one, two, three, six and seven as shown in the chart RUD 13. Further, he agreed to deposit the cheque for the duty involved therein. Further, Shri Vinod Kumar Jain, Director of M/s. Sanmati Steel Pvt. Ltd. vide letter dated 25/10/2010 informed that they have debited ₹ 50,000 in their Cenvat credit account and ₹ 1,84,918/- in their PLA account. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before learned Commissioner (Appeals) who vide impugned order dated 30.11.2012 was pleased to dismiss the appeal upholding the findings in the order in original. 6. Being aggrieved, these appellants are before this Tribunal. The learned counsel for the appellants states that the whole case of Revenue is made on presumptions and assumptions. It is admitted fact that the appellants were registered dealers. Further admitted fact is that they were procuring iron and steel items including the rounds in question from RINL and others. The appellants are maintaining proper records including register 23 D for making entry of Cenvat credit received and Cenvat credit passed on re-sale to their buyers who were manufacturers. So far the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s some other grade of rounds, the whole transaction is presumed fictitious and accordingly penalty are being imposed on the appellants. I find that there is no allegation that the appellant have sold the goods which they had not purchased. Nor there is any case made out that they have simply issued excisable invoices without despatching the goods to M/s. Sanmati Steel Pvt. Ltd. I further note that although it has been admitted by the Director of M/s. Sanmati Steel Pvt. Ltd. Mr Vinod Kumar Jain that he have indulged in procuring other goods other than specified by Railways from Daga Trading Company but it is not the case of the Director of M/s. Sanmati Steel Pvt. Ltd. that they have not received goods from M/s. Daga Trading Company. Under su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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