Commissioner of Central Excise, Kolkata-IV, Commissioner of GST & Central Excise, Howrah. Versus M\/s. Bindawala Cables and Conductors Ltd., M\/s. Bindawala Electricals Industries Ltd., M\/s. Kritika Wires Pvt. Ltd., Mr. Bhagwandas Bindawala, Direcotor.
Central Excise
2018 (7) TMI 321 – CESTAT KOLKATA – TMI
CESTAT KOLKATA – AT
Dated:- 12-6-2018
Appeal Nos. E\/76668\/2017 & CO-76098\/2017, E\/77072-74\/2017 – FO\/76235-76238\/2018
Central Excise
SHRI P. K. CHOUDHARY, JUDICIAL MEMBER
\nShri S. Guha, A.C. (AR) for the Appellant (s)
\nShri K. P. Dey, Advocate & Shri Harendra Kr. Pandey, Advocate, Shri B.N. Chattopadhyay, Consultant for the Respondent (s)
\nORDER
\nPer Shri P. K. Choudhary:
\nBriefly stated the facts of the case are that M\/s. Bindawala Cables & Conductors Limited (the assessee), Respondent No. 1 is engaged in the manufacture of various grades of Alluminium Conductors and availed CENVAT Credit under the provisions of CENVAT Credit Rules 2004. In course of investigati<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s. Shivam India Limited. By the impugned Order the Commissioner (Appeals) upheld the Adjudication Order only to the extent of confirmation of demand of Rs. 20,18,930\/- alongwith interest and set aside the penalties on the Respondents herein. It is observed that since the assessee had already reversed the CENVAT Credit of Rs. 20,18,858\/- alongwith interest amounting to Rs. 3,698\/- the same is accordingly adjusted against the quantum of confirmed demand. Hence, Revenue filed these appeals against the setting aside of penalties on the Respondents. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of non receipt of goods by the Respondents. The Learned Counsel also referred to the Case Laws. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e Commissioner (Appeals). It is evident from the record that the Assessee reversed the credit availed on the basis of the invoices issued by the two supplier companies. It was found that the credit was availed on the basis of the invoices without actual receipt of the goods. Apparently, fact of reversal of credit is linked with non-receipt of the inputs and no other conclusion can be drawn. Hence, the Order of the Commissioner (Appeals) regarding the setting aside of the penalties cannot be sustained. The Tribunal in the identical situation in the case of M\/s. Steel Centre (Supra) upheld the demand of CENVAT Credit along with interest and imposition of penalty on the assessee and reduced the penalties on the co-noticees. The relevant portion of the said Order is reproduced below:- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n undertook verification of vehicle numbers in the consignment notes of UFC in respect of the both suppliers. But the vehicles shown to have been used for transportation of goods by UFC, were found to be light motor vehicles, Maruti Car, Bajaj Scooters etc. which were not capable of carrying the load as indicated in the consignment notes. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e two dealers, is required to be reversed alongwith interest. BSE and Steel Centre have issued invoices fraudulently without transacting any goods. UFC has also facilitated such fraudulent availment of credit. Consequently, we upheld all the penalties imposed in the impugned order for the reasons mentioned therein against various persons. However, in the peculiar facts and circumstances of the present case, we are of the view that the penalties levied on the following persons are too high and merit reduction. Hence we reduce the penalties as follows: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Commissioner of Central Excise, Kolkata-IV, Commissioner of GST & Central Excise, Howrah. Versus M\/s. Bindawala Cables and Conductors Ltd., M\/s. Bindawala Electricals Industries Ltd., M\/s. Kritika Wires Pvt. Ltd., Mr. Bhagwandas Bindawala, Direcotor.Central Excise2018 (7) TMI 321 – CESTAT KOLKATA – TMICESTAT KOLKATA – ATDated:- 12-6-2018Appeal Nos. E\/76668\/2017 & CO-76098\/2017, E\/77072-74\/2017 – FO\/76235-76238\/2018Central ExciseSHRI P. … Continue reading “Commissioner of Central Excise, Kolkata-IV, Commissioner of GST & Central Excise, Howrah. Versus M\/s. Bindawala Cables and Conductors Ltd., M\/s. Bindawala Electricals Industries Ltd., M\/s. Kritika Wires Pvt. Ltd., Mr. Bhagwandas Bindawala, Direc”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12511","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12511"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12511\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n2. The Learned A.R. for the Revenue reiterates the Grounds of Appeal filed by the Revenue. It is further stated that it is a case of fraudulent availment of CENVAT Credit on the basis of fake invoices and the demand of CENVAT Credit was upheld by the Commissioner (Appeals) and therefore imposition of penalties warranted. It is also submitted that this Tribunal on the identical situation in the case of M\/s. Steel Centre & Others Vs. Commissioner<\/p>\n
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\n4. Heard both sides and perused the appeal records.
\n5. I find that the assessee is engaged in the manufacture of various grades of Alluminium Conductor. It has been alleged that they have wrongly availed CENVAT Credit on M.S. Wire and Wire Rod on the basis of the invoice issued by the two companies without actual receipt of the goods from the Suppliers concerned. It has been further alleged that there are only paper transactions. On perusal of the Adjudication Order, it is seen that Shri Bhagwan Das Bindawala, Director of the assessee in his statement dated 05.08.2015 had not seriously refuted the allegation of non-receipt of goods. In any event, it is noticed that the assessee is not disputing the demand of duty, which they have already paid prior to issuance of the Show Cause Notice. The Learned Counsel argued the matter at length in so far as the assessee received the goods at their fac<\/p>\n
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\n“4) The findings of the Adjudicating Authority has been challenged by the various appellants mainly on the ground that by claiming that the material covered by the invoices issued by BSE as well as M\/s. Stee<\/p>\n
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\n7) Verification of the bills filed at the end of MCU has further established that the invoices and consignment notes attached to goods supplied by BSC, as well as Steel Centre, do not have the weighment slips, Sales Tax, Road permission etc. The enquiry with the Commercial Taxes Authorities of Bihar has further revealed that the relevant forms are required to be issued under Bihar Sales Tax Rules for movement of consignments.
\n8) On the basis of the above evidences, it is clearly established that no goods accompanied invoices by those two dealers BSC and Steel Centre. Consequently, the CENVAT Credit availed by MCU on the basis of such invoices are irr<\/p>\n
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\n i) Shri Bimal Kr. Kheria, Chairman, MCU from Rs. 1,16,03,673\/- to Rs. 50.00 Lakhs.
\n ii) Imposition of Penalty reduced to Rs. 50.00 Lakhs on M\/s. Steel Centre .
\n iii) Penalty set aside on Shri Bishan Kumar Kheria.
\nSince penalty has been imposed on M\/s. Bhagwati Steel Centre, we feel that no separate penalty is required to be imposed on Shri Bimal Kr. Kheria, partner of M\/s. Bhagwati Steel Centre.”
\n7. After considering the facts and ci<\/p>\n
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