The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the availment of the CENVAT credit of excise duty without proper receipt of goods.
Saha Industries, the appellant assessee was engaged in the manufacture of a rolling machine, wire drawing machine, ash handling plant, coal handling plant, etc. from their Central Excise registered premises. The main inputs required were MS Steel, MS Angle, MS Channel, MS Rod, MS Nuts and bolts, MS Plates, Welding Rods, etc.
The assessee appealed against the order passed by the adjudicating authority for confirming the demand along with the imposition of penalty.
S. Mukhopadhyay, the counsel for the assessee contended that the assessee had paid the duty more than the amount of credit taken by them. The input supplier and the recipient of the finished goods have not made parties to the proceedings.
N.K.Chowdhury, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was liable to pay the excise duty demand.
The Bench observed that the assessee was involved only in paper transactions by taking invoices without any receipt of the goods in their premises and thereafter, enabling the recipient of the assessee to take credit without proper receipt of the goods.
The two-member bench comprising Ashok Jindal (Judicial) and Anpazhakan (Technical) upheld the CENVAT credit demand imposed against the assessee and allowed the appeal in favour of the assessee.
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