Order Date – 31 January 2023

Parties: Munjal Kiriu Industries Pvt. Ltd. Vs CCE & ST- Gurugram

Facts –

• The Appellant, Munjal Kiriu Industries Pvt. Ltd., are engaged in the manufacture of automobile parts.
• A show cause notice was issued to the appellant alleging that the Director General of Central Excise Intelligence (DGCEI) booked a case against various Central Excise registered units, managed by one person namely, Shri Amit Gupta. It was found that they were passing cenvat credit fraudulently without accompanying the goods to various manufacturing units as well as other registered dealers.

Issue –

• Whether the appellant is rightly availed Cenvat credit?

Order –

• The Tribunal held that the appellant has produced sufficient records in the form of invoices along with transport documents and other records showing the receipt of raw material/input register, RG23A Part-I and also the proof of payment through the banking channel.
• From the statement of Accountant of M/s AI and Excise in-charge of M/s M/A that they have actually supplied the goods to the appellant which was used by him in or in relation to the manufacture of the goods. Both the authorities below have not considered the documentary evidence produced by the appellant to prove his case.
• The Tribunal relied on the decision in in Luxmi Metal Industries vs. CCE-2013 (287) ELT 487, it was held that once goods are supplied against proper cenvatable invoice, buyer cannot go beyond that and verify whether registered dealer had purchased the goods legally.
• Hence the appeal is allowed.