TMI Blog2017 (5) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... n, it is established that the invoice which was received by RMIL, the duty shown therein was not paid. Therefore, under any circumstances, the duty which was not paid, credit of same cannot be allowed - credit not allowed. Penalties u/s 11AC and Rule 25 - Held that: - since RMIL was not aware about the wrong doing by collusion between Wind Industries and J.K. Metal Feeders. They had a bonafide belief that the invoice is valid and the duty shown in the invoice stood paid. Therefore, there is no malafide on the part of RMIL - penalties set aside. As regards the penalty imposed on J.K. Metal Feeders, it is very clear that there was a fraud committed by J.K. Metal Feeders, colluded with Wind Industries. Therefore, the penalties imposed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Shri Harish Vaman Shenvi, Dy. General Manager (Materials) of RMIL. A penalty of ₹ 61,712/- was also imposed upon J.K. Metal Feeders and also the same amount of penalty was imposed on Wind Industries. Against the order-in-original, the appellant filed appeal before the Commissioner (Appeals), which came to be rejected. Therefore, the appellants are before me. 2. None appeared for M/s. J.K Metal Feeders. Shri Archit Agarwal, learned Counsel appeared on behalf of the appellant, RMPL and its DGM Shri Harish Vaman Shenvi. He submits that the appellants have received the inputs under the cover of dealer's invoice, which is not under dispute. Therefore, even if something wrong has happened between the Wind Industries and the JK Meta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case, the appellant RMIL have received the goods under the cover of invoice. Therefore, they had a bonafide belief that input is duty paid and covered by the duty paying documents, i.e. invoice of the first stage dealer. However, on the investigation it was revealed that the input which was sold by the first stage dealer to RMIL is not the goods on which the excise duty was correctly passed on. The investigation has clearly revealed that the invoice which originated from Wind Industries is without manufacturing of the goods and without payment of duty. The very same invoice was the basis for issuance of the first stage dealer invoice by J.K. Metal Feeders. Therefore, under this investigation, it is established that the invoice wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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