9911796707
TMI Blog2010 (1) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... spondents received materials from M/s. Metal Trading Company, a registered dealer, who claims to have purchased the goods from M/s. Gautam Steel Traders, another registered dealer. The respondents have taken credit of duty on the basis of invoices issued by M/s. Metal Trading Company. The dispute relates to whether M/s. Metal Trading Company can be treated as the second stage dealer or not. The Original Authority held that the goods manufactured by M/s. Swastika Pipes Ltd., Rohtak has been sold to M/s. Rameshwar Das Devidayal (P) Ltd. and they are the first stage dealers and M/s. Gautam Steel Traders, at the most, can be considered as second stage dealer and, they in turn sold the goods to M/s. Metal Trading Company. It was thus held by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first stage dealer in terms of Rule 2(j) of Cenvat Credit Rules, 2004. Once M/s. Gautam Steel Traders could not treated as first stage dealer, the question of treating M/s. Metal Trading Company as second stage dealer does not arise and, therefore, the documents based on which the respondents have taken the credit are not valid for the purpose of taking the credit. Therefore, the order of the Commissioner (Appeals) insofar as the same relates to M/s. S.D.L. Auto Pvt. Ltd. deserves to be set aside and the order of the Original Authority deserves to be restored. 5. On behalf of the respondents, in their written submissions, it is claimed that M/s. Rameshwar Das Devi Dayal only acted as an agent of manufacturer for the sake of payment securi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guard, there is a restriction in the number of the dealers in-between the manufacturer and the recipient of the inputs, who actually uses the inputs and takes a credit towards payment of duty on the final products. This statutory condition cannot be relaxed by introducing one more person as a dealer. In the present case, the statuts of M/s. Gautam Steel Traders is that of a buyer of goods from M/s. Rameshwar Das Devi Dayal, whose status, as to whether they are registered dealer or not, is not clear. M/s. Gautam Steel Traders have not purchased the goods directly from the manufacturer and, therefore, they cannot be treated as first stage dealer and, therefore, the invoices issued by them are not valid to pass on the credit of duty paid by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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