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TMI Blog2012 (10) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... id finished goods, they purchased casting articles from M/s. Recon Casting Pvt. Ltd., Kharagpur and availed Cenvat credit of the duty paid on such inputs. The respondent had availed Cenvat credit of Rs. 2,06,445/- during the period from 11-10-2006 to 15-5-2007. Later it was found by the Department that the inputs supplier had not discharged their duty liability on the inputs cleared to the respondents. On the objection raised by the Department, the respondents had reversed the credit of Rs. 1,41,891/-, Education Cess of Rs. 2486/- and Higher Secondary Education Cess of Rs. 1173/-. Later a show cause notice was issued for recovery of the entire amount of credit of Rs. 2,06,445/- availed by them. The said amount was confirmed and the duty alr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. In this connection, he has referred to the Board's Circular No. 766/82/2003-CX., dated 15-12-2003. 5. Heard both sides and perused the records. I find that the limited issue involved in the present case, for determination, is whether the amount of duty shown in the inputs invoices is available as credit to the respondent in the event subsequently, it is noticed that the inputs supplier has defaulted for making payment of duty. I find that the ld. Commissioner (Appeals) after detailed analysis of the facts and principles of law settled in this regard has observed as under : "In view of the above findings, I am of the view that the appellants case gets strengthened in the light of the decision of Hon'ble CEGAT, Delhi Bench and CESTAT Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Delhi and CESTAT, Chennai." 6. I find that the receipt and use of inputs in or in relation to manufacture of final product has not been disputed. The amount of duty mentioned in the invoices had only been taken as credit by the respondent. The duty initially defaulted by the input supplier was discharged subsequently also not in dispute. Further, the Board vide Circular No. 766/82/2003-CX., dated 15-12-2003, has clarified at Para 5, which reads as under : "5. On the issue of availment of credit by the user-manufacturer, it is clarified that action against the consignee to reverse/recover the CENVAT Credit availed of in such cases need not be resorted to as long as the bona fide nature of the consignee's transaction is not in dispute." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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