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TMI Blog2014 (10) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has taken the CENVAT credit without producing the duty paying documents as per the formula prescribed as per Notification 35/2003 dated 10.04.2003. A buyer of fabrics, who is unable to produce the document evidencing actual payment of duty are entitled to avail credit as per Rule 9A(2) of the CENVAT Credit Rules, 2002 - to avail Cenvat Credit on the fabrics lying in stock on 31.03.2003, the appellants were not required to produce any documentary evidence of duty paid on the fabrics as per Rule 9A(2) of the CENVAT Credit Rules, 2002. - Decided in favour of assessee. - Appeal No.E/85685 and 85686/13-Mum - - - Dated:- 22-5-2014 - Ashok Jindal, J. For the Appellant : Shri Sanjay Agarwal, Adv. For the Respondent : Shri V C Khole ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mills but the suppliers stated that they have not supplied any fabrics to the appellants. With regard to the supplies of remaining fabrics, it was found that the suppliers were to be non-existence. On that basis, a show-cause notice was issued to the appellants for denial of deemed credit and imposition of penalties were also proposed. The adjudicating authority confirmed the demand along with interest and a penalty of ₹ 41,48,337/- on the main appellant M/s P.K. International and a penalty of ₹ 10,00,000/- on Shri Sanjay Ajmera. Aggrieved by the said order the appellants are before me. 3. Heard both sides. 4. The learned Counsel appearing on behalf of the appellants submits that as per Rule 9A(2) of CENVAT Credit Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said Notification. It is not disputed that the appellant has taken the CENVAT credit without producing the duty paying documents as per the formula prescribed as per Notification 35/2003 dated 10.04.2003. A buyer of fabrics, who is unable to produce the document evidencing actual payment of duty are entitled to avail credit as per Rule 9A(2) of the CENVAT Credit Rules, 2002 which is reproduced herein as under:- Notwithstanding anything contained in sub-rule (1), the manufacturer, producer, first stage dealer or second stage dealer, as the case may be referred to in the said sub-rule, who is unable to produce the document evidencing actual payment of duty shall be entitled to avail credit, calculated in a manner referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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