9911796707
TMI Blog2023 (5) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... No.20/12/Ac/Joka/Kol-v/Adjn 2015-16 dated 29.01.2016, had disallowed the Cenvat Credit of Rs.1,77,745/- (Rupees One lakh seventy seven thousand seven hundred & forty five only) and also imposed penalty of Rs.88,873/- (Rupees Eighty eight thousand eight hundred seventy three only), under Rule 15(2) of Cenvat Credit Rules 2004 besides demand for interest under Section 11AA, was also confirmed. 2. The appellant is a manufacturer exporter of agricultural machinery falling under Chapter 84. They source raw materials through Roshanlal Bhogirathmal a registered dealer. As per the invoices issued by the said registered dealer the name and address of the buyer, if not consignee is shown as; i. Shreeluxmi Iron Trading Company. ii. Venus Trading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of the Act and the Rules and availed the said Cenvat Credit not due on the strength of the eight invoices issued by the registered dealer. 4. Heard the rival submissions and perused the records. The facts of the case are not in dispute. 5. The department in support of their contention have alleged that the goods which have been utilized in the manufacture are not the one's in respect of which the impugned invoices have been issued and on the strength of which Cenvat Credit has been availed by the appellants. It is their contention that the dealer only to promote the business of the impugned buyer/consignee, unlawfully benefited the consignee by issuing cenvatable invoices without supplying any material. As the appellants have not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port of the goods to the consignee. Relevant portion of the circular is quoted below: "5- Various specific issues referred to by the trade are classified as follows - i. Where a registered dealer negotiate sale of an entire consignment from a manufacturer or a registered importer and orders direct transport of goods to the consignee, credit can be availed by the consignee on the basis of invoice issued by the manufacturer or the registered importer. In such cases no Cenvatable invoice shall be issued by the registered dealer in favour of the consignee though commercial invoice can be issued. Where a registered dealer negotiates sale of goods from the total stock ordered on a manufacturer or an importer to multiple buyers and orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse at the port to the buyer's premises, the amendment prescribes that for such movement the factum of such direct transport to the buyer's premises needs to be recorded in the invoice. 6.1 For earlier period, the appellant has adverted to Circular No. 218/52/96-CX dated 04.06.1996 concerning transit sale movement of goods under Rule 52-A invoice. Moreover, even the circular referred supra clearly states that the impugned changes need to be read harmoniously keeping the governments intention in mind and that these were by way of additional facility to registered dealer for direct dispatch of goods from the manufacturer to consignee when they were issuing cenvatable invoice. Moreover, it is noted that the department's stance is purely con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nse to Q. 13 of the statement of the Director, recorded under Section 14 of the Central Excise Act on 15.07.2015. Obviously, no finished goods would have been produced if said goods were not received by them. Also sourcing and negotiating of supplies through vendors, who may be unregistered is a normal industry practice, and seeks to improve and facilitate the conduct of business. So is also the purport of in the circular issued providing for direct dispatch of goods from a registered dealer to the consignee. It is also noted that the appellants have also enclosed bank statements showing the payments made to the unregistered dealer through whom the said purchases have been said to be negotiated with the registered dealer. I find the situati ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
