Commissioner of Central Excise and Service Tax Vs Kamilbhai Zanulbhai Vashi & Ors. (CESTAT Ahmedabad)
Summary: CESTAT Ahmedabad dismissed four Revenue appeals seeking personal penalties against Shri Kamilbhai Z. Vashi and other co-noticees after noting that Revenue’s appeal against the main assessee, M/s. Taha Wires Pvt Ltd, arising from the same adjudication order had already been dismissed. The dispute originated from a Show Cause Notice dated 03.10.2007 alleging wrongful availment of CENVAT credit of Rs.3,93,98,286/- on copper ingots/wire bars of Sri Lankan origin allegedly without actual receipt of the inputs. Penalties had also been proposed against the director and transporters under Rule 26 of the Central Excise Rules, 2002 and other provisions.
DGCEI had alleged that Taha Wires used non-duty-paid scrap for manufacturing copper wires while availing CENVAT credit on duty-paid invoices without physically receiving the invoiced inputs. The original adjudication order dated 20.04.2011 confirmed demands, interest and penalties. However, CESTAT, by order dated 08.01.2019, set aside that order and remanded the matter for de novo adjudication. In the remand proceedings, the Principal Commissioner, Central GST & Central Excise, Daman, passed the Order-in-Original dated 16.07.2019 in favour of the noticees by dropping the proceedings. Revenue thereafter filed separate appeals against Taha Wires and the four co-noticees.
