9911796707
TMI Blog2019 (7) TMI 2011X X X X Extracts X X X X X X X X Extracts X X X X ..... Department has not adduced any evidence regarding compliance of provisions of Section 9D of the Central Excise Act before the statement were admitted evidence. It has been held in the number of cases including ANDAMAN TIMBER INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE, KOLKATA-II [ 2015 (10) TMI 442 - SUPREME COURT ] and SKYRISE OVERSEAS PVT. LTD. VERSUS COMMISSIONER OF CUSTOMS (PORT) [ 2017 (11) TMI 1012 - CALCUTTA HIGH COURT ] wherein it is held that without complying the Section 9D the reliance cannot be placed on such statements - reliance cannot be placed on the statement of these persons. It is on record that appellant has manufactured the excisable goods and cleared them on payment of duty which is not disputed by the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvatable of non ferrous metals to the manufacturers of excisable goods. The investigation was therefore taken up by the Director General of Central Excise Investigation (DGECI) by conducting searches at various premises belonging to Shri Amit Gupta and his residential premises and also at dealers place under his control. 2.1 The Statements of various persons including that of Shri Amit Gupta, various transporters, whose truck numbers appeared on the subject invoices, Authorized Signatory and Director of M/s. RNG Impex (other Appellant no-1) were recorded wherein Shri Amit Gupta (Appellant No.2) admitted that they have just supplied the Cenvatable invoices, without supply of goods to these manufacturers. The manufacturer (one of them bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a no. of judgements in support of their contentions. Grounds of appellant no.4: - that the appellant was not provided with the RUDs and hence the order against principles of natural justice. - that the order has been passed without proper service of the notice. - that penalty has been imposed solely on the basis of statement which were recorded under coercion. - that the appellant has no rule to play in availment of credit by M/s. RNG, on the invoices issued by M/s. Unnati Alloys, as he is in no way connected with the said registered dealer M/s. Unnati Alloys as he is neither a Director/ authorized signatory there. - the appellant relied upon a no. of judgments in support of their contentions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments. We therefore do not place reliance on the statement of these persons. It is on record that appellant has manufactured the excisable goods and cleared them on payment of duty which is not disputed by the Department. The department has not found the other sources of raw material/ inputs procured by the Appellant. In such a circumstance it will not be appropriate to hold that the appellant has not procured the goods from the companies belonging to Shri Amit Gupta (other Appellant No.). We also find that identical issue come up for consideration before Hon ble Allahabad high court in case of 2014 (302) E.L.T. 487 (All.). The paragraph which is relevant is reproduced as under: 7. In the present case, both the Commissioner (Appeals) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the basis of invoices, the buyer is entitled to assume that the excise duty has been/will be paid by the supplier on the excisable inputs. The buyer will be therefore entitled to claim Modvat credit on the said assumption. It would be most unreasonable and unrealistic to expect the buyer of such inputs to go and verify the accounts of the supplier or to find out from the department of Central Excise whether actually duty has been paid on the inputs by the supplier. No business can be carried out like this, and the law does not expect the impossible. 9. Ultimately, the issue in each case is whether, within the meaning of Rule 9(3) of the Rules of 2004, the assessee has taken reasonable steps to ensure that the inputs in respect of wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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