M/S ISHWAR STEELS Vs. CCE, NOIDA

JUDGEMENT

(1.) HEARD . Since common question of law and facts arises in all these appeals, they are heard together and are being disposed of by this common order.

(2.) THE appellants challenge the order dated 28.01.2009 passed by the Commissioner, Noida. By the impugned order the learned Commissioner has confirmed the demand of Cenvat Credit of Rs. 1,00,03,601/ - against the appellants, M/s D.R. Auto Industries, in terms of the provisions of Rule 12 of Cenvat Credit Rules, 2002 and Rule 14 of the Cenvat Credit Rules, 2004 read with proviso to Section 11 -A of the Central Excise Act, 1944 having wrongly availed the same on the strength of invoices issued by M/s Ishwar Steels, Ghaziabad, and has confirmed demand of interest on the said amount. The impugned order further confirms the demand of excise duty to the tune of Rs. 1,45,931/ - from the appellants, M/s D.R. Auto, in relation to the goods found short in the factory and has imposed penalty of Rs. 1,01,49,532/ - against the said firm. The learned Commissioner has also imposed penalty of Rs.80,00,000/ - against Shri Krishan Kumar Dhingra, Partner of the said firm, and penalty of Rs. 1,00,03,601/ - upon M/s Ishwar Steels, Ghaziabad, as also penalty of Rs. 75,00,000/ - upon Shri Inder Arora, Partner of M/s Ishwar Steels.

(3.) AMONGST various grounds on which the impugned order is sought to be challenged, two of the grounds are that - (i) the respondent failed to comply with the basic principles of natural justice inasmuch as no sufficient opportunity was given to the appellants to file their reply to the show cause notice and the appellants were not furnished with the copies of any relied upon documents which were specifically asked for, and (ii) the findings arrived at about non -receipt of the inputs in the factory of the appellants are not based on any cogent and material evidence, but the findings in that regard are merely on assumptions, and assuming that there is any evidence as such on record, it can at the most support the claim of the Department to the extent of Rs. 41 lacs and odd.