TMI Blog2014 (3) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. - Appeal Nos. E/1049 & 1050/2011 -EX(SM) - Final Order No.50733/50734/2014 - Dated:- 21-2-2014 - Mrs. Archana Wadhwa, J. For the Appellant : Shri Prabhat Kumar, Advocate For the Respondent : Shri BB Sharma, DR JUDGEMENT Per Hon ble Mrs. Archana Wadhwa : After hearing both the sides, I find that the appellants M/s. S.K. Foils Ltd. are engaged in the manufacture of cold rolled strips, etc. falling under Chapter 72 of the First Schedule to the Central Excise Tariff Act, 1985. They were availing the benefit of CENVAT credit of duty paid on the raw-materials/inputs received by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the materials from M/s. Steel Mongers (I) Pvt. Ltd., i.e., second stage dealer, which has been duly received by them and consumed in the manufacture of their final product, which was cleared on payment of duty. He contended that he is not concerned either with M/s. Khemka Ispat Ltd. or M/s. Bhagwati Trading Co. as they have purchased the material from the second stage dealer and have made payments by cheque/Demand Draft to the said second stage dealer. He also referred to ST 38 challans in support of his contention that the goods have physically arrived in their factory. 3. In the above back-drop, proceedings were initiated against the appellants for confirmation of CENVAT credit of Rs.5,42,580/- as also for imposition of penalties. The same culminated into an order passed by the original adjudicating authority and upheld by the Commissioner (Appeals). Hence, the present appeal. 4. After hearing both the sides and after going through the impugned order of the Commissioner (Appeals), I find that there is no dispute on the facts that the appellants have purchased the raw-materials from the second stage dealer M/s. Steel Mongers (I) Pvt. Ltd. The investigations conducted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lace of business, and where the identity and address of the manufacturer or the supplier is satisfied on the strength of a certificate, the manufacturer or producer taking CENVAT credit shall retain such certificate for production before the Central Excise Officer on demand. 6. As is seen from the above, a manufacturer has to satisfy himself about the genuineness of the supplier of the goods from the identity and address of the manufacturer or supplier from his personal knowledge or on the strength of certificate given by the Superintendent of Central Excise having jurisdiction over the factory. Admittedly, the second stage dealer in the present case was a registered dealer having registration number printed on the invoices being issued by him. His identity and address was also reflected in the said invoices. The payments for the materials received by him were being paid by the assessee by way of cheque or demand draft. Whether in such circumstances, an assessee is further required to walk a mile and find out as to whether the goods received by the second dealer were procured by him in a legitimate manner or were cleared by the manufacturer or the first stage dealer after paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablish that material was supplied and the credit of duty paid on inputs were availed and used in manufacture of excisable goods on which appropriate duty of Central Excise was paid and monthly return as prescribed under the Central Excise Rules read with CENVAT Credit Rules was filed with the jurisdictional Central Excise Range Officer. The appellants entered the duty paid inputs in the R.G.23A part I and further issued to production department for manufacture of finished product and sold in the market paying appropriate duty of Central Excise for which proper returns etc. to the proper authorities filed. The appellant have availed the CENVAT Credit on the documents prescribed under the Cenvat Credit Rules, 2002 on which proper duty have been paid. 8. As is seen from the above, it stands admitted by the appellate authority that the raw-materials stand received by the assessee, which were used by him in the manufacture of their final product, on which appropriate duty of central excise was paid and monthly returns were filed. It also stands observed by him that they have availed the credit on the basis of the documents prescribed under CENVAT Credit Rules, 2002 on which proper d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Delhi reported in 2008 (228) ELT 347 (Del). I may also refer to a recent decision of the Hon'ble High Court of Uttarakhand in the case of CCE, Meerut-I Vs. Purushottam Industries Ltd., Roorkee, wherein vide their order dated 28.12.29012, Revenue s appeal stands rejected. To the same effect is the decision of the Hon'ble High Court of Karnataka in the case of CCE, Bangalore Vs. Bhuwalka Alloys Pvt. Ltd. [2012 (281) ELT 213 (Karnataka)] laying down that in the absence of any dispute as regards the receipt and consumption of inputs in the factory of the assessee, the CENVAT credit cannot be denied on the ground that the dealer was not non-existence and the inputs were not duty paid. 10. By applying the ratio of all the above decisions to the facts of the present case, I find that the 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. 11. For all the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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