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2010 (11) TMI 819 - AT - Central ExciseCenvat credit denied - appellants has not received the inputs against the duty paying document - inputs which were received by the appellant are not those inputs which are mentioned in the invoice - Demand, interest and penalty - Held that:- Allegation can be verified only by inspection of the input in the factory of the appellants only, which could not be done in this case as the inputs have already gone in the process of manufacturing. Being a prudent buyer the appellant has taken the credit on a duty paying document which is not in dispute and same has been cleared after processing by paying duty on the same at the time of clearance. In that situation, if there is an allegation that the appellant has taken the credit at bona fide belief same is to be dealt with in accordance with the C.B.E. & C. Circular No. 766/82/2003-CX., dated 15-12-2003 wherein it has been clarified that if any action is to be taken; that is to be taken against the supplier of the goods. On the identical facts, this Tribunal has already held that demand is not sustainable in the appellant’s own case vide order dt. 11-10-2007, which has been accepted by the department, appellant has taken the credit on the duty paid invoice in accordance with the law. In the facts and circumstances of the case, the demand, interest and penalty are not sustainable. Accordingly impugned order is set aside and the appeal is allowed.
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