TMI Blog2006 (12) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... case, has taken an undertaking from the merchant manufacturer to compensate him, in the event of credit being found not eligible. Whether this was done out of abundant precaution or out of knowledge is not clear. In this regard benefit of doubt naturally goes to the appellant manufacturer. Thus, hold that - (a) the invoices raised by M/s. Muskan Prints is not valid for the purpose of taking credit by the appellant; (b) the appellant is required to pay the duty and interest as demanded by the original authority and as upheld by the Commissioner (Appeals); (c) the penalty is not sustainable. The appeal is disposed off on the above terms. - Shri M. Veeraiyan, J. REPRESENTED BY : Shri Mukund Chouhan, CA, for the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to final product. We undertake if Central Excise Customs department declare to dismantle all of Cenvat credit on grey fabrics. Then we are liable to pay the all of Cenvat credit which we utilised from process of our grey fabrics. Under our Reg. No. 370404/D/403/2003 . (c) M/s. Muskan Prints the alleged supplier has given fake and fictitious address; the statement recorded from Shri Rafiq Sattar Godil who is partner of Abhilasha Market indicates that there is no such firm Muskan Prints at the given address and infact, a professional courier firm is functioning in the said address since 2001. (d) The invoices issued by Muskan Prints was held to be fictitious and accordingly the Cenvat credit taken on the strength of the said invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kan Prints purchased the material is immaterial as the credit was available for stock of fabric held by them as on 31-3-2003. 5. Ld. DR submits that the spirit of Rule 7 envisages that whoever takes credit should take precaution that the person who has passed on credit has indeed paid the duty at his end. 6. It is not in dispute that the credit has been taken on the basis of invoices issued by one M/s. Muskan Prints of Surat. M/s. Muskan Prints did not exist in the address given by them. There is a clear evidence of fraud on the part of M/s. Muskan Prints. Any fraud vitiates the transaction. The document cannot be held to be valid for the purpose of taking credit. The appellant is the manufacturer; the duty liability and obligation to f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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