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2014 (8) TMI 539 - CESTAT NEW DELHICENVAT Credit - issue of invoice without supply of material - procurement of goods from second stage dealer - genuineness of dealer - Penalty - Held that:- The statement of the authorized representative of Khemka reveals that with the loss of business in the year 2002, they entered into an arrangement with the first stage dealer for issuing invoices without the supply of goods so as to reflect some sale purchase books on accounts - Rule 7(2) of Cenvat credit rule requires the recipient of the inputs to know the identity of the supplier of the goods, was second stage dealer, the rule stand satisfied by the manufacturer with proprietor of second stage dealer having deposed that they had in fact supplied to the manufacturer, payment for which were made by them in cheque - Recipient of the inputs is expected to know his immediate supplier and there is no further requirement to find out as to from where his supplier has procured the inputs - Penalties set aside - Following decision of M/s SUPER TRADING COMPANY & OTHERS Versus COMMISSIONER OF CENTRAL EXCISE, DELHI-IV [2013 (10) TMI 491 - CESTAT NEW DELHI] - Decided in favour of assessee.
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