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TMI Blog2022 (7) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... aid invoices were paid to M/s. Santhi Steels, Coimbatore. When they were asked to explain / corroborate the discrepancies pointed out in the Show Cause Notice, the noticees took a stand that the evidences procured by the Revenue were vague and that no tangible or cogent evidences were adduced. A perusal of the Show Cause Notice reveals the quantification of the wrongfully availed CENVAT Credit of Rs.4,96,719/- during the years 2006-07, 2007-08 and 2008-09. When the Revenue entertained a genuine doubt as to the wrongful availment of CENVAT Credit after verifying documents like invoices, Daily Sheets, etc., and since there were discrepancies, a Show Cause Notice was issued. When a statutory notice was issued, it was incumbent upon the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Customs and Central Excise (Appeals), Salem, whereby the penalty imposed under Rule 26 of the Central Excise Rules, 2002 has been upheld. 2. The only issue, therefore, to be decided is: whether the said penalty sustained in the impugned order is correct or not? 3. Shri R. Balagopal, Learned Consultant, appeared for the appellant and Shri Arul C. Durairaj, Learned Superintendent, represented the Revenue. 4. Heard both sides and perused the documents placed on record. Even though the Advocate has filed Vakalatnama for M/s. Hitech Mineral Industries (Covai) Pvt. Ltd. as well, the Learned Advocate chose to argue only in respect of the appellants namely, Shri M.P. Kumar (Power of Attorney Holder of M/s. Santhi Steels), M/s. Santhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revealed that there were differences in respect of goods with reference to some of the invoices and that the Revenue had sought for explanation / corroboration from the appellant. Some of the persons who were examined, like the Supervisor of M/s. Santhi Steels (appellant in Excise Appeal No. 42256 of 2013), corroborated the fact that the scrap in question received by M/s. Hitech Mineral Industries (Covai) Pvt. Ltd. were different from the scrap mentioned in the dealer invoices said to have been duty-paid scrap despatched from the godown of M/s. Santhi Steels, Coimbatore. 5.3 It is the case of the Revenue that :- Invoices like Invoice No. 66 and 67 are second stage dealer invoices raised by one of the appellants (namely, M/s. Santhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 11 ibid. and that the said invoices contained all required particulars in terms of Rule 9 of the CENVAT Credit Rules, 2004 and that the duty amount mentioned in the said invoices were paid to M/s. Santhi Steels, Coimbatore. When they were asked to explain / corroborate the discrepancies pointed out in the Show Cause Notice, the noticees took a stand that the evidences procured by the Revenue were vague and that no tangible or cogent evidences were adduced. A perusal of the Show Cause Notice reveals the quantification of the wrongfully availed CENVAT Credit of Rs.4,96,719/- during the years 2006-07, 2007-08 and 2008-09. The Adjudicating Authority, after considering the explanation offered by the appellant, however, vide Order-in-Original S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a on the invoices, Daily Sheets and statement of some of the noticees which was recorded during the course of investigation, to hold that M/s. Hitech Mineral Industries (Covai) Pvt. Ltd. had wrongfully availed CENVAT Credit and that the other co-noticees had abetted in enabling M/s. Hitech Mineral Industries (Covai) Pvt. Ltd. to avail wrongful CENVAT Credit. Hence, the fact remains that M/s. Hitech Mineral Industries (Covai) Pvt. Ltd. had wrongfully availed CENVAT Credit and the appellant being any person who has abetted in making such documents that helped M/s. Hitech Mineral Industries (Covai) Pvt. Ltd. in availing such wrongful CENVAT Credit, cannot escape from the rigours of Rule 26 of the Central Excise Rules, 2002. 6.1 Further, f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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