Appeal Nos. (1) E/1685/2009 & (2) E/1825/2009, [Arising out of Order-in-Appeal No. 37-LDH-2008 dated 12.03.2009 passed by the Commissioner of Central Excise (Appeals), Ludhiana]. Case: 1. A.K. Industries 2. C.C.E., Ludhiana Vs 1. C.C.E., Ludhiana 2. Annapurna Impex Pvt. Ltd.. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)

Case NumberAppeal Nos. (1) E/1685/2009 & (2) E/1825/2009, [Arising out of Order-in-Appeal No. 37-LDH-2008 dated 12.03.2009 passed by the Commissioner of Central Excise (Appeals), Ludhiana]
CounselFor Respondents: Sh. Satya Pal, A.R.
JudgesMr. Devender Singh, Member (Technical)
IssueCentral Excise Act, 1944 - Section 11AC
Judgement DateMay 31, 2017
CourtCEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)

Order:

Devender Singh, (Chandigarh)

  1. Despite notice, there is none for the appellants in Appeal No. E/1685/2009-EX[SM] and there is none for the respondent in Appeal No. E/1825/2009-EX[SM]. It is seen from the record that in the previous hearings on 21.02.2017, 28.03.2017 and 20.04.2017 the situation was same. It appears that appellants in Appeal No. E/1685/2009-EX[SM] and respondent in Appeal No. E/1825/2009-EX[SM] are not interested in prosecuting and defending their appeals. In that background, both the matter being very old, are taken up for a decision with the help of the Ld. A.R.

  2. Ld. A.R. has taken the bench through overwhelming evidence documenting that there was no production at the end of M/s Annapurna Impex Pvt. Ltd. (M/s AIPL) and transaction between M/s A.K. Industries (M/s AKI) and M/s AIPL were bogus.

  3. After hearing the Ld. A.R. and examining the records, I find that M/s A.K. Industries (M/s AKI), Ludhiana are registered for the manufacture of brass and copper alloys. They had taken cenvat credit of Rs. 25,67,069/- on the strength of invoices issued by M/s Annapurna Impex Pvt. Ltd. (M/s AIPL). The item wise material shown to have been received by M/s AKI from M/s AIPL is as under:

    S.No.

    Item

    Quantity

    Cenvat

    1.

    Copper Scrap

    97864.6

    Rs. 1562450/-

    2.

    Copper Ingots

    58781.85

    Rs. 944548/-

    3.

    Zinc

    5316.4

    Rs. 43075/-

    4.1 An investigation conducted at the end of M/s AIPL for the period 2002-03 and 2003-04 revealed that M/s AIPL never showed generation/production of copper during the manufacturing process. It was also seen that the cenvat details given in ER-1 returns were not supported by purchases of copper scrap during the relevant months. M/s AIPL did not show any opening or closing balances of copper scrap in the ER-1 returns and RG-1 register. During the visit of Central Excise Officers on 03.02.2005, no furnace was found installed and the only machinery/apparatus installed in the factory was wire drawing machinery on which wires could be drawn from copper wire-rods. A panchnama was drawn and a statement of Sh. Parshotam Lal, an employee of M/s AIPL was recorded. In his statement dated 03.02.2005, Sh. Parshotam Lal stated as below:

    that -- except receiving of copper coil and sometimes plastic rolls and one or two drums of varnish, no other copper material is received in the factory and further it is stated that during the last two years except of copper coils, no other material of copper or brass...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT