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2014 (3) TMI 412 - CESTAT NEW DELHIDenial of CENVAT Credit - Entitlement of credit by purchaser of the raw-material from the second stage dealer - Credit availed on bogus transactions - Investigations conducted by the Revenue revealed fake transactions between M/s. Khemka Ispat Ltd., the manufacturing unit and M/s. Bhagwati Trading Co., the first stage dealer. If M/s. Khemka Ispat Ltd. has not received the raw-materials and has incorrectly availed the CENVAT credit and has not actually manufactured their final product and has incorrectly utilised the wrongly availed CENVAT credit for payment of duty on their final product - Held that:- in the light of the observations made by the Commissioner (Appeals) as also the factual position that the appellants have received the goods, the burden placed upon them under Rule 7(2) of the CENVAT Credit Rules, 2002 stands discharged. A manufacturer cannot be expected to undertake investigations like Revenue officers and to find out the truth behind the scene. As long as he is receiving the goods from a known dealer under the cover of the invoices and making payments by cheques, he is deemed to have discharged the onus placed upon him under the said rule. Revenue is not disputing the fact of receipt of inputs by the manufacturer. It is also seen that no investigation stands conducted by Revenue from second stage dealer, who has actually supplied the inputs to the appellants. Also, there is no answer by Revenue as to from where the second stage dealer has received the inputs so as to supply the same to the appellants - Following decision of Rishab Industries Vs. CCE & ST, Goa [2007 (8) TMI 657 - CESTAT MUMBAI] - Decided in favour of assessee.
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