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TMI Blog2008 (11) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... t for manufacture of finished goods "Steel Ingots". (ii) Whether Mutilated/overwriting erasing of Sl. No. of invoices should be considered for availing Modvat credit or not. (iii) Whether two invoices were issued by M/s. Balaji Udyog without any goods so credit should be allowed or not. (iv) Seven invoices were issued by M/s. Bengal Engineering Works who has no existence as reported. So credit should be allowed or not on those invoices. The issues framed above were decided in favour of the Respondent as under :- "(a) In respect of the first point, it is seen that declaration was submitted by the assessee in 1994. As well as it was decided in the Apex Court & Tribunal (1) 1995 (75) E.L.T. 3 (S.C.), (2) 1999 (83) ECR-631 (Trib.) & (3) 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt failed to satisfy Revenue that appropriate duty was paid by them to the Treasury through the seller of the input. 3. The Revenue appellant represented by Shri K.P. Singh, SDR vehemently objected that the ld. Appellate Authority should not have reversed the order of the ld. Adjudicating Authority who relying on the report of the Field Authorities, disallowed the Modvat credit on the ground that the goods sold by M/s. Shree Balaji Udyog was without valid duty paying document and goods sold by M/s. Bengal Engineering Works was not in existence. Without looking to these material aspects, the ld. Appellate Authority decided in favour of the Respondent abruptly by a non-speaking order. Therefore, the first appellate order is unsustainable. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.3 We are also of the view that if credit is made available on forged/fake documents, then the same is non est and there is no valid document conveying right to Modvat credit, following the ratio laid down by Hon'ble High Court of Calcutta holding as under in the case of ICI India Ltd. v. Com. of Customs (Port), Calcutta - 2005 (184) E.L.T. 339 (Cal.) and on appeal by Assessee, Hon'ble Supreme Court dismissed such Appeal - 2005 (187) E.L.T. A31 (S.C.). It is an elementary principle of jurisprudence that Legal Fraud vitiates everything even judgments and orders of the Court. If a transaction has been founded on fraud, the vice will continue to taint it, and not only is the person who has committed fraud is precluded from deriving any bene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent to seek duty credit if proved to have been obtained under fraud that shall not confer title on the Respondent for no title such document ever had. Once no delivery is proved at the end of the manufacture, merely making a book entry by the claimant in statutory record as to receipt of the input that shall not ipso facto grant benefit of Modvat credit to the claimant. 6. In view of our aforesaid observations and the settled law banning fraud against revenue, it would be proper to remit the matter to the learned Adjudicating Authority to bring entire material used against the Respondent for an opportunity of rebuttal. The matter may accordingly be decided on its own merit following due process of law. Accordingly, setting aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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