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TMI Blog2023 (12) TMI 1367X X X X Extracts X X X X X X X X Extracts X X X X ..... l the three parties - HELD THAT:- The contention which was however addressed by the appellant was that even if credit had been availed albeit fraudulently, the same would stand reversed at the time of issuance of invoices - This understanding of a reversal of credit is what has been answered against the appellant by the CESTAT. It is thus manifest that the CESTAT was justified and correct in ultim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts, there does not appear to be any dispute as would be evident from the following recitals as appearing in paragraph 11 : - 11. The investigation by Revenue established conclusively that M/s Aggarwal Plastics has closed down the factory in January 2002 and further, it was established that M/s. Satvik Industries also did not have the infrastructure to manufacture the declared goods to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit account without issue of any invoice. The expression is also used when any inputs on which credit is taken is cleared as such (without use in further manufacturing) by covering the inputs so cleared by invoice on which duty reversal is shown. These situations are inherently different from the situation where credit is taken fraudulently and then used for issuing invoices show.ng utilizat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an invoice is issued debiting the duty payable as per the invoice, either to cover excisable goods or just to create a phony document to enable the person receiving the invoice to take credit. The situation in this case is that mentioned in (iii) above and this is not a situation where no harm is caused to Revenue. 15. The Cenvat credit rules provide for availing cenvat credit on inputs subject t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbers of vehicles found in the invoices. Thjs evidence conclusively establishes that the invoice indicating the duty amount has covered only paper transactions and cannot be a valid document for transfer of credit. 4. It is thus manifest that the CESTAT was justified and correct in ultimately coming to conclude that reversal of credit would not sustain, at least in the manner as suggested by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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