Case Law Details
KEI Industries Ltd. Vs Commissioner of Central Excise (CESTAT Delhi)
The officers of Directorate General of Central Excise Intelligence4 visited the factory of VKM on 29.11.2006, collected information, investigated and came to the conclusion that VKM had issued invoices without receiving any raw material and without manufacturing and supplying copper ingots. Based on this investigation, a show cause notice dated 05.01.2010 was issued to VKM demanding central excise duty of Rs. 42,37,24,491/-. Show cause notices were also issued to various buyers of VKM including the assessee herein seeking to deny Cenvat credit on the strength of the invoices issued by VKM on the ground that since VKM had not manufactured any ingots, it could not have supplied them to its buyers and only invoices were issued without supplying any ingots. The orders passed by the Commissioner deciding many such show cause notices were appealed against and disposed of by this Tribunal by Final order No. A/51982-51997 of 2018 – EX (DB) dated 23.05.2018. It was held that the allegation that VKM had not manufactured and supplied copper ingots and only issued invoices was not correct. Consequently, the demand against VKM was set aside as also the orders seeking to deny Cenvat credit to the buyers of VKM.
The basis of the allegations in the show cause notice in this case and denial of Cenvat credit by the impugned order and imposition of penalties is also on the ground that M/s VKM had not manufactured any copper ingots and had only issued invoices to the appellant. This Tribunal had already decided, by a detailed order dated 23.05.2018, that this allegation is not true and VKM had manufactured copper ingots. Therefore, no basis remains for denial of Cenvat credit to the appellant/assessee herein. Consequently, the imposition of penalty upon the assessee and Shri Anil Gupta, Director of the assessee also cannot sustain.
FULL TEXT OF THE CESTAT DELHI ORDER
These two appeals have been filed assailing the order-in-original dated 26.09.2013 passed by the Commissioner of Central Excise, Delhi – II1. The operative part of the impugned order is as follows :-
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