Appeal No. E/1698/2011-Ex (Arising out of OIA No. 30/CE/APPL/DLH-IV/2011 dt. 19.4.2011 passed by the CE(Appeals), Delhi-IV, Faridabad). Case: Arvind Enterprises Vs CCE. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)

Case NumberAppeal No. E/1698/2011-Ex (Arising out of OIA No. 30/CE/APPL/DLH-IV/2011 dt. 19.4.2011 passed by the CE(Appeals), Delhi-IV, Faridabad)
CounselFor Appellant: Shri Tech Chand, Assistant of Advocate and For Respondents: Shri M.S. Negi, DR
JudgesManmohan Singh, Member (T)
IssueCentral Excise Act, 1944 - Section 14
Judgement DateJune 12, 2014
CourtCEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)

Judgment:

Manmohan Singh, Member (T), (New Delhi)

1. Appellant M/s. Arvind Enterprises have come in appeal against OIA No. 30/CE/APPL/DLH-IV/2011 dt. 19.4.2011 passed by the Commissioner(Appeals), Central Excise, Delhi-IV, Faridabad wherein he has rejected the appeal of the appellant and upheld the order of adjudicating authority.

2. Brief facts of the case are that during the course of investigations conducted by the Directorate General of Central Excise Intelligence (DGCE), New Delhi, it transpired from the seized documents & statements of various persons recorded under Section 14 of the Central Excise Act, 1944 that M/s. Haryana Steel & Alloys Ltd., 48 Km Stone, GT Road, PO-Engineering College, Murthal, Sonepat (Haryana) herein after referred to as HSAL) indulged in clandestine removal of SS Flats to certain manufacturers located elsewhere in India and engaged in fraudulent issuance of Cenvatable invoices of alloy steel bars & rods, AS/MS Billets, Rounds, Carbon steel Billets & Ferro alloys and passing of irregular CENVAT Credit to various manufacturers/dealers located at Chandigarh, Faridabad & Rohtak etc. without dispatching any goods to them. M/s. Arvind Enterprises, B-203, 1st floor, Nehru Ground, Faridabad (hereinafter referred as dealer) is one of the dealer recipient of such fraudulently issued Cenvatable Invoices without accompaniment of corresponding goods. The investigation further revealed that M/s. Arvind Enterprises, B-203, 1st floor, Nehru Ground, Faridanad had further issued 12 cenvatable invoices involving Cenvat Credit of Rs. 98,000/- to M/s. Advance Engineers, Faridabad, (hereinafter referred as manufacturer) on the strength of fraudulent invoices issued by HSAL & manufacturer availed cenvat credit on the said invoices.

3. Shri Ramesh Rawat, Executive Director of HSAL in his statement dated 29.6.2006, tendered under Section 14 of the Central Excise Act, 1944, admitted said facts of fraudulently issuance of Cenvatable invoices without supply of goods. Shri Arvind Tiwari, Authorized Signatory of dealer firm and Son of the owner of dealer firm under his statement dated 17.2.2008 tendered under Section 14 of the Central Excise Act, 1944, admitted that since they were receiving the material through Shri Subhas Goel, a broker to whom they usually place the supply order as per requirement. He further stated that in the light of evidence shown to him i.e. statement dated 29.6.2006 of Shri Ramesh Rawat, Executive Director of HSAL, he could say that material received through broker might have not been manufactured by HSAL & they had received goods with Cenvatable invoices manufactured by someone else alongwith invoices of HSAL. Shri Alok K. Bisht, Proprietor of M/s. Advance Engineers, Faridabad, in his statement dated 22.9.2009, tendered under Section 14 of the Central Excise Act, 1944, on being shown the statements of said persons, admitted that invoices received from dealer were not accompanied by the same goods that were described therein & manufactured by HSAL. He understood the irregularities about fraudulent cenvat...

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