COMMISSIONER OF CENTRAL GOODS & SERVICES TAX, SHILLONG Vs. MANAKSIA LIMITED

JUDGEMENT

(1.) The instant appeal has been preferred by the Revenue/Appellant under sec. 35G of the Central Excise Act against the common judgment and order dtd. 18/12/2019, passed by the Customs Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata in Appeal No. E/76940-76954/2019, in so far as the said impugned judgment and order had dismissed the Appeal, bearing No. E/76099/2014, filed by the Appellant against the adjudication order of the Commissioner, which had allowed the respondent's appeal, being Appeal No. E/76154/2014 and dropped the charges against the respondent as contained in the show-cause notice dtd. 28/11/2007.

(2.) The respondent, during the material period, had a manufacturing unit at Anjar, Kutch, Gujarat, wherein they manufactured Excisable goods within the meaning of the Central Excise Act, 1944. The respondent, from time to time, had purchased machinery from several suppliers including one M/s. Ishaan Technologies Private Limited (respondent in Central Excise Appeal No. 1 of 2020). The respondent, in course of its business, on the basis of Excise invoices under the Cenvat Credit Rules of 2002, had availed Cenvat Credit on the duty paid for the said machinery. However, pursuant to a search and seizure operation carried out by the Directorate General of Central Excise Intelligence, Ahmedabad, in the year 2005 and 2006, at the respondent's factory, the respondent was served with a show-cause notice dtd. 28/11/2007. It was alleged therein, that the respondent had availed and utilized Cenvat Credit on the basis of alleged bogus, fake and fabricated invoices issued by M/s. Ishaan Technologies and the show-cause notice proposed disallowance and recovery of Cenvat Credit of Rs.3,97,77,440.00 along with interest, appropriation of Rs.2,37,57,760.00 deposited by the respondent during the course of investigation and imposition of penalties. Show-cause notices were also issued by the Additional Director General, DGCEI, Kolkata, to M/s. Ishaan Technologies.

(3.) On the basis of the show cause notices, including the show cause notice issued to M/s. Ishaan Technologies and other units of the respondent, the matters were then taken up in a common adjudication proceeding which resulted in a common adjudication order dtd. 31/3/2014. By the said adjudication order, the Commissioner, while confirming the allegations and demand against M/s. Ishaan Technologies and the other co-noticees, dropped the proceedings against the respondent (i.e., show-cause notice dtd. 28/11/2007). The Commissioner, however, appropriated a sum of Rs.2,37,57,760.00 deposited by the respondent under protest during investigation, towards the duty demand confirmed against M/s. Ishaan Technologies, in respect of proceedings arising from a different show-cause notice dtd. 28/2/2006.