TMI Blog2013 (10) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... the rule stand satisfied by the manufacturer with Shri Amit Kumar proprietor of second stage dealer having deposed that they had in fact supplied to the manufacturer, payment for which were made by them in cheque. Recipient of the inputs is expected to know his immediate supplier and there is no further requirement to find out as to from where his supplier has procured the inputs - the confirmation of demand of duty and imposition of penalty on M/s. Faridabad Autocomp Systems and Super Trading Company set aside - the imposition of penalty of M/s. Ayushi Steels Company, even if the Revenue's case is accepted that they dealt only with the invoices without actually dealing with the goods even then no penalty can be imposed upon them inasmu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods from the manufacturer M/s. Khemka Ispat Ltd. 3. As a result of certain investigations conducted at the end of M/s. Khemka Ispat Ltd. by the officers of DGCEI, New Delhi, it was gathered that the said manufacture unit was only issuing the invoices to the first stage dealer i.e. M/s. Ayushi Steel Company Pvt. Ltd., without actual supply of the goods. Shri Amit Kumar, director of Khemka Ispat Ltd., in his statement dated 24.02.2007 admitted the above fact. 4. Accordingly, investigations were conducted at the end of M/s. Ayushi Steels Company. In his statement of Shri Rupesh Bansal, Director was recorded on 01.02.2007, wherein, he admitted the above fact, As a result records of second stage dealer i.e. M/s. Super Trading Company were ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the availment of credit by the M/s. Faridabad Autocomp Systems Pvt. Ltd., stand strongly pleaded before me that the goods were received from M/s. Super Trading Company, which was duly registered as second stage dealer, under the cover of the invoices. In terms of the provisions of Rule 7 of Cenvat credit Rules, the recipient of inputs is required to know his supplier of the inputs. There is no dispute about the fact that M/s. Super Trading Company were known to the appellant on account of their personal knowledge and long standing business relations. The identity of Super Trading Company is known to them on account of being a legal dealer and their address is duly mentioned on the invoices issued by them. As such, they fulfill all the req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocured the inputs from the second stage dealer M/s. Super Trading Company said who in his statement has agreed to have supplied the goods to the manufacturing unit. Inasmuch as Rule 7(2) of Cenvat credit rule requires the recipient of the inputs to know the identity of the supplier of the goods, which in the present case was second stage dealer, I am of the view that the said rule stand satisfied by the manufacturer with Shri Amit Kumar proprietor of second stage dealer having deposed that they had in fact supplied to the manufacturer, payment for which were made by them in cheque, I find no reasons to uphold the findings of the lower authorities that no inputs were actually received by them. There is neither any allegation nor any evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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