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2018 (11) TMI 353 - AT - Central ExciseCENVAT Credit - duty paying documents - credit availed on the basis of such endorsed invoices received from the principal manufacturers for whom they were doing job work - documents were issued by fake/ non-existent firms - it was also alleged that provisions of sub-rule (2) of Rule 7 of the CCR-2002 not complied with - CBEC Circular No. 713/29/2003-CE dated 07.05.2003 - invocation of Extended period of limitation. Held that:- The appellants are job workers who received goods from various principal manufacturers. The appellants are not buyers of the goods as the said goods are purchased by the principal manufacturers and supplied to the appellants for the purpose of processing by endorsing the invoices. The appellant do not come in contact with the suppliers - in the SCN no specific charge or evidence of any suppression mis-declaration etc. on the part of the appellant has been pointed out - the demand of Cenvat Credit is set aside on the ground of limitation. Rebate claim to M/s Dolar Tek - penalty on M/s RTML - appellant has argued that Section 11AC of Central Excise Act, 1944 cannot be invoked to impose penalty as there is no demand raised in the said proceedings against the appellant - Held that:- It is seen that the SCN issued to the appellant in the said case only makes allegation regarding wrong availment of credit without citing any evidence infact the SCN presumes that there are bogus/ fake suppliers and does not substantiated the said allegation by any evidence whatsoever. In these circumstances imposition of penalty under Section 11AC read with Rule 15(2) of the Cenvat Credit Rule is not sustainable - penalty set aside. Appeal allowed - decided in favor of appellant.
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