Cenvat credit could be denied on ground of addresses of the owner of vehicles found to be fake

PJ/Case Laws/2011-12/1435

Case: AJAY INDUSTRIAL CORPORATION v/s COMMISSIONER OF C. EX., DELHI-III

Citation: 2009 (237) ELT 175 (Tri.- Del.)

Issue:- Whether Cenvat credit could be denied on ground of addresses of the owner of vehicles found to be fake?

Brief Facts:- Appellants availed Cenvat credit on the basis of the invoices issued by registered dealer in the month of January 1998 and February, 1998. It was alleged against the appellants that they have availed credit on the basis of invoices without receiving the inputs.

Show cause notice was issued to the appellant. S summons were issued to the owner of the trucks, who did not respond and the address as available on the record is fake. The Adjudicating Authority dropped the proceedings by observing that the appellants confirmed the transportation of the goods along with Cenvatable documents as well as recipient of payment in respect of these transport transactions. The Director of Registered Dealer firm has confirmed the actual transportation of the goods. There are proper entries of receipts, sale of materials in the records kept at their registered godown and no such short or deficiency has been found in respect of the appellants. It was also observed by the Adjudicating Authority that the appellants manufactured the final product and supplied these items to the Public Sector Undertaking.

The Commissioner (Appeals) allowed appeal by Revenue and set aside the Adjudication Order on the ground that the addresses of the owner of these vehicles were found to be fake. It has also been observed that transporters admitted the facts that they had never transported such goods.

Hence, appellants filed appeal before the Tribunal.

Appellant’s Contention:- The Appellant submit that on perusal of the statement of Director registered Dealer Firm reproduced in the show cause notice, it is stated that and Revenue had not disputed genuineness of truck nos.

Reasoning of Judgment:- The Tribunal perused the statement of the proprietor of the Registered Dealer wherein it was stated that for the last 3-4 months, they were having dispute with the owners of the premises of their godown. The Tribunal found that the invoices were issued in the months of Jan. 1998 and Feb., 1998 and Revenue had not disputed genuineness of truck nos. So, credit cannot be denied on the ground that the address of the truck owners available are fake.

Order of the Commissioner (A) set aside. Original order of the Adjudicating Authority set aside.

Decision:- Appeal allowed with consequential refund.

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PJ/Case Laws/2011-12/1435

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