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2015 (7) TMI 1143 - AT - Central ExciseDenial of CENVAT credit - manufacture of sheet metal parts falling under Chapter 72, 76 and 82 of the Central Excise Tariff Act, 1985 - exemption claimed from payment of excise duty - whether the denial of CENVAT credit justified on the ground that the supplier was not liable to pay the Central Excise duty and has paid the same, the recipient of the goods i.e. the appellant is not eligible for CENVAT benefit? - Held that: - Taking of CENVAT credit of Central Excise duty and service tax paid by the supplier, is in conformity with Rule 3(1) of the CENVAT Credit Rules, 2004. The fact is not under dispute that the goods covered under the disputed invoices have not been received by the appellant for use in the intended purpose. Further, it has also not been alleged by the authorities below that the Central Excise duty/ service tax liability has not been discharged by the suppliers of disputed goods/ services. Thus, in absence of any specific prohibition in the CENVAT Statute, restricting availment of CENVAT credit, in the eventuality, of any dispute between Central Excise Department and the supplier, the recipient of the goods, cannot be held liable for reversal of CENVAT credit. The decision in the case of CCE & CC vs MDS Switchgear Ltd. [2008 (8) TMI 37 - SUPREME COURT] relied upon where it was held that quantum of duty already determined by the jurisdictional officers of the supplier unit cannot be contested or challenged by the officers incharge of recipient unit. Denial of CENVAT credit not justified - appeal allowed - decided in favor of appellant.
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