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2010 (6) TMI 465 - AT - Central ExcisePenalty - Cenvat credit - First stage dealers - The appellants had neither purchased the goods from the manufacturer M/s. Swastika Pipe Ltd. nor from the their consignment agent - rather they had purchased the goods from M/s. Rameshwar Das Devi Dayal (P) Ltd. who was only an indenting agent and not the consignment agent of the manufacturer that the appellants are not covered by the definition of first stage dealer as rightly held by the adjudicating authority - The accountant of the appellant clearly shows that the appellant were aware that in respect of the goods purchased from M/s. Swastika Pipes Ltd. they are not the first stage dealer but they still issued invoices by posing themselves as first stage dealer. Held that the penalties have rightly been imposed on the appellant - However in view of nature of contravention and the fact that the cenvat credit has been allowed by the Commissioner (Appeals) to the end users the penalties on the appellant are reduced to 25% of cenvat credit demand.
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