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TMI Blog2014 (2) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... red dealers and availed CENVAT credit under CENVAT Credit Rules, 2004. A show-cause notice was issued proposing to deny the CENVAT credit of Rs.58,940/- availed during the month of July - August 2006 on the basis of the invoices issued by the dealers M/s. Leadsman Enterprises. 2. The adjudicating authority confirmed the demand of duty of Rs.58,940/- along with interest and penalty of Rs.15,000/- under Rule 15(1) of CENVAT Credit Rules, 2004 and Rule 15(2) of the said Rules read with Section 11AC of the Central Excise Act separately. Further, penalties were imposed on the first and second stage dealers. 3. The assessee filed appeal before Commissioner (Appeals) for setting aside the adjudication order. Revenue also filed appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Vs. CCE - 2007 (219) ELT 680 (d) R.S. Industries Vs. CCE - 2003 (153) ELT 114 3. On the other hand, the learned AR on behalf of the Revenue submits that during the investigation, it was found that the dealers supplied the scrap from the local market which is not duty paid. It is further submitted that they have received the goods on much lower value than the purchase price of the dealer. Thus, it is clearly evident that the appellant had connived with the dealers in respect of receipt of the goods fraudulently. He relied upon the decision of the Tribunal in the in the case of Amex Alloys Pvt. Ltd. & Or. Vs. CCE - 2013 (296) ELT 229 and V.K. Enterprises Vs. CCE -2010 (249) ELT 462. 4. Af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they had transacted in good faith only. 5. The learned Consultant placed the invoices as referred in the statement, before the Bench. It is seen that the dealers supplied CI scrap and issued invoices under the description of 'CI scrap'. The Commissioner (Appeals) observed that it has been made out in the show-cause notice that the appellant received the goods at much lesser value than the purchase price. It is also observed that if they have looked into the pricing of the goods received by them, it would have come to their knowledge that the invoices issued by the dealers are prices much lower than the purchase price by the dealers themselves. 6. It appears that the appellant issued the purchase order for purchasing the CI scrap. They re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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