COMMISSIONER CENTRAL EXCISE AHMEDABAD Vs. TEJAL DYESTUFF INDUSTRIES

JUDGEMENT

(1.) ALL these appeals have been heard together as they emanate from a common order made by the Customs, Excise Service Tax Appellate Tribunal (CESTAT ).

(2.) IN Tax Appeal No. 1727 of 2007, the following two questions have been proposed by appellant revenue.

(3.) THE respondent herein M/s Tejas Dyestuff Industries is engaged in manufacture of dye intermediates. Respondents of Tax Appeal Nos. 1729 of 2007 and 1730 of 2007 are connected with the respondent firm herein while respondents of Tax Appeal Nos. 1726 of 2007 and 1728 of 2007 are persons who are registered dealers namely Directors of one M/s Bhimani Chemicals Private Limited, the supplier of certain inputs like LAB and Soda Ash. Respondent firm claimed Cenvat Credit in relation to the aforesaid inputs on the basis of the said inputs being duty paid. The adjudicating authority found that the inputs had not been received by respondent unit and hence after issuing show cause notice, confirmed the demand holding that respondent unit was not entitled to the Cenvat Credit claimed. For this purpose, reliance has been placed on the statements made by some of the present respondents as well as one transporter Shri Ravindrabhai M. Shah of M/s Shah Bulk Carrier, Vadodara and employees of the respondent unit. The case of the adjudicating authority is that respondent unit had merely obtained invoices from the dealers showing receipt of duty paid inputs without actually receiving the said goods; the payment towards such invoices, though shown to have been made by cheques, appear to have flown back to the owner of respondent unit; the transporter had stated that the goods in question had been delivered outside octroi limits, and the statements of the employees as well as Directors of the registered dealers supported the case of revenue that in fact no goods had been received by the respondent unit. One more factor which was considered was non-availability of storage capacity by the respondent unit. Accordingly, the adjudicating authority confirmed demand to the tune of Rs. 1,09,35,008/- along with another demand of Rs. 55,163/- as well as imposed penalties and interest. Confiscation of finished goods and raw material valued at Rs. 1,55,685/- was also ordered.