OM Shakti Smelters Pvt. Ltd Vs Commissioner of Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that recovery of cenvat credit alleging receipt of only paper invoice without actual receipt of inputs is not tenable due to incomplete investigation carried out on the part of the department. Also held that recovery is not sustainable since vendor is not made co-noticee.
Facts- The Appellant is engaged in the manufacture of MS Round /Ingot/Billet all falling under Chapter 72 CET. Proceedings were initiated against a firm known as Shree Ganesh Forging Company, wherein purportedly documents were recovered from them to the effect that they have only issued Paper Invoices to the appellant without actually dispatching any goods.
Based on this investigation, proceedings were initiated against the present appellant to recover the Cenvat Credit of Rs.81,66,865/- on the ground that the Cenvat availed in respect the consignments of MS Round , TMT Cutting, end cutting etc. were not physically received by the appellant.
Show Cause Notice was issued, by invoking the extended period provisions and after due process, the Adjudicating authority went on to confirm the demand along with interest and imposed penalties on the appellants. Being aggrieved, the appellants have preferred the present appeal before the Tribunal.
