Appeal No.E/152/2008-DB, [Arising out of OIO No.03/MP/2007, dt.31.10.2007, passed by Commissioner, C.Ex. & S.Tax, Surat-II]. Case: Ms. Jagdamba Dyeing & Printing Mills Pvt. Ltd. Vs Commissioner of C.Ex. & S.Tax, Surat-II. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Appeal No.E/152/2008-DB, [Arising out of OIO No.03/MP/2007, dt.31.10.2007, passed by Commissioner, C.Ex. & S.Tax, Surat-II] |
| Counsel | For Respondents: Shri N. Satwani, A.R. |
| Judges | Dr. D.M. Misra, Member (Judicial) and Mr. Ashok K. Arya, Member (Technical) |
| Issue | Costoms Law |
| Judgement Date | May 15, 2017 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
Ashok K. Arya, (West Zonal Bench At Ahmedabad)
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M/s Jagdamba Dyeing & Printing Mills Pvt. Ltd (M/s Jagdamba) is in appeal against OIO No.03/MP/2007, dt.31.10.2007, passed by Commissioner, C.Ex. & S.Tax, Surat-II, where under penalty of Rs.10 lakhs has been imposed on them under Rule 26 of Central Excise Rules 2002.
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Brief facts are that:-
i) M/s Akai Fashions (M/s Akai) was engaged in the manufacture of Textile madeups.
ii) Department received intelligence that M/s Akai was lying closed/ inoperative but showing export of huge quantity of textile madeups and availing rebate claim on the basis of fake invoices prepared to pass of the CENVAT Credit without supplying the goods.
iii) The Central Excise officers of Surat-II Commissionerate made search at the premises of M/s Akai and found that there was neither any raw material/finished goods nor any documents and there was no manufacturing activity or even the electricity connection in the said premises.
iv) The Central Excise officers recorded the statements of various persons and issued Show Cause Notice to M/s Akai, M/s Jagdamba, the appellant herein, and others. The Show Cause Notice inter alia, proposed recovery of the wrongly availed in-admissible CENVAT Credit amounting to Rs.51,70,589/- from M/s Akai and for imposition of penalty on various noticees including the present appellant M/s Jagdamba.
v) The charge against the appellant-noticee is that there has been no movement of goods viz. raw material from the supplier to the two processors M/s Jagdamba (the present appellant) and M/s Sai Krupa Dyeing & Printing Mills Ltd who has also been the co-noticee but presently not the party to these proceedings. Show Cause Notice also mentions that M/s Akai did not receive the goods mentioned in the invoices issued by the appellant M/s Jagdamba by making use of the invoices issued by the appellant M/s Jagdamba and others; when there has been no manufacturing activity carried out by M/s Akai, huge amount of inadmissible CENVAT Credit (of Rs.51,70,589/-) was wrongly availed.
vi) The statement of Director of M/s Jagdamba Shri Ramprasad B. Jhavar was also recorded on 20.03.2006 indicating that there was no correlation between the grey fabrics purportedly purchased by M/s Akai and the fabrics processed by M/s Jagdamba on job work basis for M/s Akai. The Show Cause Notice charged that there did not appear to have any correlation between the processed fabrics purportedly cleared by the appellant...
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