Case Law Details
Goodluck Empire Vs CCE & ST (CESTAT Ahmedabad)
The case of Goodluck Empire Vs CCE & ST, adjudicated by CESTAT Ahmedabad, revolves around penalties imposed under Rule 26 of the Central Excise Rules, 2002. The appellants were charged for issuing Cenvat Credit invoices to M/s Nakoda Alloys Pvt. Ltd. without supplying goods, resulting in the fraudulent passing of Cenvat credit.
Analysis: The appellants, represented by their Chartered Accountant, argued that the Adjudicating Authority did not conduct proper cross-examination, and thus, their statements couldn’t be used as evidence for the penalty imposition. They also argued that Rule 26(2), under which penalties were imposed, only came into effect from April 1, 2007, meaning it could not apply to transactions before that date.
Rule 26(2), under which penalties were imposed, only came into effect from April 1, 2007, meaning it could not apply to transactions before that date.
Upon examination, the Tribunal noted that the main party in question, M/s Nakoda Alloys Pvt. Ltd., had their case settled under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The Tribunal also acknowledged that cross-examination had been conducted despite claims of discrepancies.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
