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2016 (6) TMI 271 - AT - Central ExciseCenvat credit on paper transactions not physically received - Held that:- The manufacture supplier of the goods is not M/s Jai kara Steel Rolling Mills at all. No investigation has been conducted by the Revenue at the end of manufacturer supplier who has issued the invoices on which the appellant has taken Cenvat Credit. No investigation was conducted from the transporters to ascertain the fact whether goods have been transported to the appellant's factory or not. Merely on the ground that M/s Jyoti Steels is non-existent and having no godown, denial of cenvat credit proposed. It is not disputed by the Revenue that during the relevant period, M/s Jyoti Steels was the registered dealer and registration was granted to M/s Jyoti Steels by Central Excise Registration Department. If a supplier of goods is the registered dealer of the department itself, the department cannot allege that dealer is non-existent unless and until registration is cancelled. Admittedly, in the case the appellant is able to produce the invoice against which appellant has availed cenvat credit and the same has been entered in their RG-23 Reigster therefore, the burden lies on the revenue to prove that this is only a paper transaction and the goods have not been received by the appellant at all. To ascertain this fact that appellant has not received the goods, the statement of transporter is very much relevant to find out the truth. Moreover, the investigation at the end of manufacture supplier may also reveal the truth whether the manufacture supplier has supplied the goods to the appellant through the registered dealer or not but the same has not been discharged by the revenue. Thus the charge against the appellant that they have not received goods and it was only the paper transaction is not sustainable. - Decided in favour of assessee.
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