Case Law Details
New Modern Technomech Private Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)
CESTAT Kolkata held that Cenvat Credit cannot be denied alleging non-existence of seller as the Appellant being a bonafide purchaser of goods for a price which included the duty element and payment made by cheque and availed CENVAT Credit based on Cenvatable documents.
Facts-
The Appellant purchased 15,711 Kilo Litres of Furnace Oil for an amount of Rs.7,28,978/- from one of the vendors viz. M/s. Sri Kamala Udyog who is also a registered assessee with the Central Excise Department and availed CENVAT Credit of Rs.92,660/- (including Cess).
Show Cause Notice dated 27.01.2016 was issued on the ground that M/s. Sri Kamala Udyog has no existence and no plant and machinery are there in their declared premises and they are not performing any manufacturing activities. It is alleged that said M/s. Sri Kamala Udyog had undertaken only paper transactions and issued fake Central Excise invoices. Hence the CENVAT Credit availed by the assessee against the invoice issued by the alleged fraud manufacturer cannot be treated as CENVAT in terms of Rule 3 and the invoices are not proper documents under Rule 9(1)(a) of CENVAT Credit Rules, 2004 for ailment of credit. So, the credit availed on the said documents are inadmissible and recoverable along with interest and penalty.
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