2026-VIL-1423-CESTAT-KOL-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Denial of Cenvat credit and recovery of duty on alleged irregular availment of credit without actual physical receipt of inputs - Department based case on verification of vehicle registration numbers through VAHAN portal showing certain vehicles incapable of transporting goods and statements recorded during investigation - Whether the Revenue has established by cogent evidence that inputs were not received and transactions were paper transactions - HELD - The appellant had received disputed inputs under cover of valid Central Excise invoices issued by duly registered dealer with invoices disclosing particulars of original manufacturers and duty paid thereon - Consideration for transactions was discharged through recognized banking channels including RTGS and account-payee cheques with corresponding ledger accounts reflecting realization of sale proceeds. Service tax on GTA services was duly discharged under reverse charge mechanism and reflected in statutory ST-3 Returns - These contemporaneous statutory records lend considerable assurance to bona fides of transactions and cannot be brushed aside without convincing evidence to the contrary - Department nowhere alleged or established that appellant procured non-duty-paid scrap from any undisclosed source - Mere verification of vehicle registration numbers without independent investigation of actual transportation chain is insufficient to sustain serious allegation of fraudulent availment. The investigation remained conspicuously incomplete with no investigation at transporters' end, no verification at suppliers' premises, no physical stock discrepancy and no evidence regarding diversion of inputs elsewhere - Isolated discrepancies in vehicle numbers regarding handful of cases out of more than 150 consignments and nearly 80 transport vehicles cannot justify inference that entire series of transactions was fictitious - Statements recorded do not contain categorical admission of non-receipt and do not inspire confidence with internal contradictions considerably eroding evidentiary value - No evidence of fraud, collusion, wilful misstatement or suppression of facts necessary to invoke extended period of limitation. The entire proceedings barred by limitation - The impugned order is set aside and appeals are allowed
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