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2015 (5) TMI 1000 - AT - Central ExciseCenvat credit denial and imposition of penalty - M/s. Aar Aar Technoplast Pvt. Ltd. has availed cenvat credit on the basis of invoices without receiving the goods in the factory - First stage dealer M/s. Jagruti Resins Pvt. Ltd. has not supplied the goods to the second stage dealer M/s. Shree Sai International, Faridabad, from whom goods have been purchased by the appellant - Held that:- The appellants have maintained proper records to prove that the goods have been received in their factory premises. In this regard, the records such as, material receipt register, gate entry register etc., though were produced before the authorities below, but no findings have been recorded regarding such claim of the appellant and also the authenticity of the documents have not been doubted. Further, register maintained by the appellant clearly shows that the amount indicated therein has been paid to the second stage dealer for supply of the goods and that the said payment has been routed through approved banking channel. Denial of cenvat credit on the ground of investigation conducted at the premises of the first stage dealers, cannot be the defensible ground, especially in view of the fact that no investigation has been conducted at the premises of the second stage dealer, from whom the goods have been purchased by the appellant. Since, the Department has not adduced any plausible evidence regarding non-receipt of the disputed goods by the appellant, penalty imposed on Shri Manoranjan Singh Duggal, President of the appellant company is not sustainable under the law. Denial of cenvat credit and imposition of penalties on the appellant are not justified - Decided in favour of assessee
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