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2011 (1) TMI 1243 - COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE (APPEALS), NOIDADisallowance of Cenvat credit - Utilization on the strength of the fake invoices issued by their supplier - reasonable steps to be taken - Imposition of penalty - Held that:- evidence on record indicates that the appellant was really engaged in the manufacturing activities and for the manufacture of the finished goods they needed copper rod/copper wire. Therefore, it cannot be said that copper rod/copper wire had not ever been received in their factory. The evidence brought on record shows that the copper rod/copper wire were received by them from their (the appellant’s) job workers after the job workers had converted the same from the ingots. But the crucial question is whether the ingots which were received by the job workers were also of duty paid nature and whether the same were really covered by the invoices issued by M/s. VKM (VKMW). Impugned order has admitted itself that the goods in question (i.e. copper ingots) had been received by the appellant in the form of copper rod/copper wire after being converted (from copper ingots) by their job workers who had directly received the said copper ingots on these invoices from M/s. VKMW on behalf of the appellant. Further it has also been admitted in the impugned order that the appellant had discharged its contractual liability by making payment of these invoices through banking channel by cheques. Neither the show cause notice alleges any other source of procurement of the said copper ingots, received under these invoices nor the impugned order found any other source of procurement of such copper ingots. The provisions governing the availment of the credit envisages that the assessee availing the credit should ensure that the inputs should have suffered duty at the hands of the manufacturer and the inputs covered under the invoices have been received and the same have been utilized in the manufacture of their final goods. Appellant therefore, cannot be asked to go beyond the duty payment document in his hand. The appellant had checked the authenticity of the invoice issued by the manufacture and the latter is registered with the Central Excise. Thus, I find that the appellant have taken due care while procuring the duty paid inputs. Therefore, the Cenvat credit may not be disallowed on such inputs i.e. copper ingots received against these invoices simply on the ground that the goods were not the same. Thus, and impugned order is devoid of merit and the same is not sustainable - Following decision of M/s. Manaksia Ltd. v. C.C.E., Rajkot [2008 (6) TMI 149 - CESTAT AHEMDABAD] and C.C.E, Chandigarh v. Hitkari Industries Ltd. [2008 (2) TMI 124 - CESTAT, NEW DELHI] - Decided in favour of Appellant.
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