Pankaj Goyal Vs Commissioner of Central Excise & Service Tax (CESTAT Chandigarh)
The appeal was filed against Order-in-Original dated 12.04.2019 passed by the Principal Commissioner, whereby a penalty of ₹50,000 was imposed on the appellant under Rule 26(2) of the Central Excise Rules, 2002. The penalty was imposed on the allegation that the appellant had aided traders in issuing excisable invoices without actual supply of goods.
The case originated from an investigation into scrap dealers, namely M/s Sai Steel Traders, M/s Sai Multimetals, and M/s Yashoda Traders. The investigation alleged that scrap was sold to re-rolling units without invoices in cash, while invoices were issued to furnace units without actual supply of goods. Based on these activities, it was alleged that furnace units availed inadmissible CENVAT credit and that the involved parties were part of a network of paper transactions.
Search operations were conducted on 27.11.2012 at various premises, including those of the scrap dealers, brokers, and the appellant. During the search, certain documents and materials were recovered, including papers and electronic storage devices. Statements were recorded from dealers, manufacturers, and other persons during the investigation. On the basis of these materials and statements, it was alleged that invoices were issued without actual supply of goods and that cash transactions were carried out outside the recorded system.
