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2013 (3) TMI 143 - AT - Central ExciseCenvat Credit on brass scrap supplied by Registered Dealer under the cover of Cenvatable invoices denied - Held that:- The appellant has admittedly purchased the goods from M/s. Saraswati Impex, Jagadhari. Statement of Sh. Vikrant Gupta of M/s. Saraswati Impex was recorded on 25-1-2005 wherein he confirmed having purchased the goods against the regular Cenvatable Invoices issued by M/s. Sulabh Impex & Ganpati Trader and having further sold goods to the appellants by issuing his own invoices with all these transactions fully reflected in his regular books of accounts and the payment received from the buyers. Further during the course of the adjudication statement of Sh. Surinder Vasudeva, Partner of the appellants, was recorded on 29-8-2007 wherein he confirmed having received the brass scrap from M/s. Saraswati Impex against the regular Cenvatable Invoices. The said scrap was entered in the RG-I Register along with credit entered in RG-II Register and stands utilized in the final product which was cleared on payment of duty. As per the Cenvat Credit Rules, a manufacturer is required to take reasonable steps about the supplier of the goods. In the present case, there is no dispute about the supply of goods by M/s. Saraswati Impex, under cover the Cenvatable goods. The manufacturer cannot go beyond that to verify and find out as to whether the Registered Dealer, who has supplied the goods to him, has procured the same legally or not. Thus even the supplier of the goods of M/s. Saraswati Impex have stated that they have received the goods from the Registered Dealer under cover of Modvat Invoice. Any fraud, if any at the end of the first two Registered Dealers, cannot result in denial of credit to the appellant, who procured the goods directly from the Registered Dealer who has also accepted having received the goods from the first two Registered Dealers - Thus no justifiable reason to deny the credit to the appellant. Also Show Cause Notice dated 23-11-2007 for the period 2004 to 2005 is also barred by limitations - in favour of assessee.
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