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2013 (11) TMI 953 - CESTAT CHENNAICENVAT credit on non-duty paid scrap - Contravention of Rule 25 (a) - duty paying document - invoice of the second stage dealer – Held that:- From Rule 11 (7), it is clear that removal from the premises of a second stage dealer also is removal and a second stage dealer also has to issue proper invoices showing true particulars. This has not been done in this case - there is a contravention of Rule 25 (a) in respect of duty paid goods supplied to Units not availing Cenvat credit - In respect of non- duty paid goods cleared to the manufacturers under invoice showing duty payment there is a clear violation of rules with intent to evade payment of excise duty on final products manufactured (by paying such duty through fraudulent credit) - This duty liability is not on the second stage dealer - the situation will be covered by Rule 25 (d) and also in respect of non-duty paid goods supplied to the manufacturer under invoice showing duty payment - both the goods were liable to confiscation. The reason that the goods were not available to confiscation should not be a reason to avoid penalty - the Hon’ble High Court of Punjab and Haryana has held that penalties can be imposed in such cases under Rule 25 of the rules as it existed at that time – Decided against Assessee.
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