M/S. R B Industries vs C.C.E. Delhi-Iv `
- CitationExcise Appeal No. E/50519/2015-[SM]
Ratio decidendi
The rule this decision rests on
The purchaser of goods against whom Cenvat credit demand and penalty proceedings are initiated on the ground that the supplier issued invoices without supplying the goods cannot be made liable to adjudication while the show cause notices issued to the supplier remain pending before the adjudicating authority; the proceedings against the purchaser must await the outcome of the supplier's adjudication, and an order passed in advance of it is to be set aside and the matter remanded for a reasoned and speaking order to be passed after that adjudication is concluded.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-In-Appeal No. 316/CE/APPL/DLH-IV/2014 dated 27.10.2014 passed by CCE (Appeals) Delhi-IV]
For approval and signature:
Hon'ble Mr. S.K. Mohanty, Member (Judicial)
1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3 Whether Their Lordships wish to see the fair copy of the Order?
4 Whether Order is to be circulated to the Departmental authorities?
M/s. R B Industries ...Appellant(s)
Vs.
C.C.E. Delhi-IV ` Respondent(s)
Appearance:
Sh. N. L. Jangir (Advocate) for the Appellant
Mr. Vaibhav Bhatnagar(DR) appeared for the Respondent
CORAM:
Hon'ble Mr. S.K. Mohanty, Member (Judicial)
Date of Hearing/ Decision. 29.10.2015
Final Order No. 53686 /2015_
Per S K Mohanty:
Brief facts of the case are that M/s. Jwala Steel Corporation is a manufacturer of steel pipes and are also engaged in the trading of HR/CR Coils, procured from M/s Steel Authority of India Ltd. The Central Excise Department initiated proceedings against M/s.Jwala Steel Corporation for confirmation of duty demand and also for imposition of penalty on the ground that without supplying the goods, the said party had issued fake invoices, entitling its buyer to avail fraudulent cenvat credit. Show cause notices issued to M/s.Jwala Steel Corporation are pending for adjudication. Based on the investigation conducted in the premises of M/s.Jwala Steel Corporation, proceedings have been initiated by the Central Excise Department against the appellant herein for confirmation of duty demand on Cenvat credit/imposition of penalty.
2. The ld. Counsel appearing for the appellant submits that since the show cause notices issued to M/s. Jwala Steel Corporation, the supplier of goods are pending for adjudication, proceedings cannot be initiated against the appellant, who is only the purchaser of the goods for confirmation of Cenvat demand and also for imposition of penalty. He also rely on the decisions of this Tribunal, wherein on identical set of facts, the impugned orders passed on earlier occasion were set-aside and the matter remanded back to the original authority for fresh adjudication of the dispute, after deciding the case initiated against M/s. Jwala Steel Corporation.
3. The ld. D.R. appearing for the Respondent fairly concedes to the submissions made by the counsel for the appellant.
4. In view of the above, the impugned order is set aside and the matter is remanded back to the original authority for passing reasoned and speaking order, subsequent to the adjudication of the proceedings pending against M/s Jwala Steel Corporation.
5. The appeal is allowed by way of remand.
(Dictated and pronounced in open court)
(S. K. Mohanty)
Member(Judicial)
Neha
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E/50519/2015-Ex[SM]
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