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2014 (3) TMI 415 - AT - Central ExciseDenial of CENVAT Credit - Manufacturer recipients took cenvat credit on the basis of invoices issued by second stage dealer - Revenue contends that both the first stage dealer and the second stage dealer only issued invoices without the movement of inputs - Held that:- It is observed that no investigation has been done at the end of the manufacture recipients end to the effect that the vehicles used for transport of inputs from second stage dealer to the manufacturers factory were not capable of transporting the inputs received by manufacturer. There is also no evidence on record that manufacturer recipients were aware of the fact that inputs received by them were not the same inputs which were received by the first stage dealer which was sold to second stage dealer without movement of inputs. Except in the case of M/s. Apex Alloys Steel Pvt. Ltd. there is no evidence that cheque payments made were subsequently compensated by the second stage dealer by cash payment after deducting his commission. In the absence of any such evidence cenvat credit cannot be denied to the manufacturer recipients and it cannot be held that extended period of five years is applicable. - cenvat credit is admissible to the manufacture recipients, except in the case of M/s. Apex Alloys Steel Pvt. Limited, on merits as well as time bar. - Decided partly in favor of assessee. Regarding penalties - for the period prior to 01.3.2007 on the first stage dealer or second stage dealer - Held that:- first appellate authority was justified in upholding penalties against appellants even for the period prior to amendment of Rule 26 of the Central Excise Rules, 2002 - levy of penalty confirmed.
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