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2017 (8) TMI 1263 - AT - Central ExciseCENVAT credit - non-payment of duty by supplier - case of the department is that the CENVAT credit which the appellants has availed in respect of the duty which was not paid by the supplier therefore the appellant is not entitled to the CENVAT credit - Held that: - the fact is not under dispute that appellant have bonafidely purchased the goods, with cover of valid duty paying invoice and payment of the entire amount of invoices to the supplier. The input covered under invoice was received and used by the appellants. In these facts, irrespective of whether the supplier has discharged the duty in time or otherwise, the eligibility of the cenvat credit to the appellants cannot be disputed. This issue has been clarified by the Board in the circular dated 15.12.2003 referred by the appellants - the Board has clarified the due to non-payment of duty by the supplier, action against the consignee to recover the CENVAT credit availed in such cases need not be resorted to as long as the bonafide nature of the transaction is not disputed. In the present case, there is no dispute about the bonafide nature of the transaction. Appeal allowed - decided in favor of appellant.
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