Arjan Das & Sons Pvt. Ltd Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
Summary: CESTAT Kolkata set aside a confirmed CENVAT credit demand of Rs.10,38,428/- against Arjan Das & Sons Pvt. Ltd., holding that the assessee had produced documentary evidence showing purchase, receipt and accounting of the inputs. The assessee, a manufacturer of non-alloy MS-Ingot, had purchased iron and steel scrap from Satabdi Tie-Up Private Limited under 34 invoices during November-December 2010. Revenue alleged, on the basis of an investigation against the supplier, that only paper invoices had been issued without actual movement of goods.
The Tribunal noted that the assessee produced input invoices, stock accounts, the vendor’s ledger and bank statements. These records showed that the goods were received under invoices issued in terms of Rule 9 of the CENVAT Credit Rules, 2004, accounted for in the stock records and paid for through banking channels. In contrast, Revenue’s demand was based solely on evidence allegedly recovered from the supplier without proper corroboration in the assessee’s proceedings. The Tribunal therefore set aside the Rs.10,38,428/- demand on merits. It also held the demand time-barred because the transactions had been accounted for in RG 23A Part I and reflected through ER-1 returns, and Revenue failed to establish suppression.
