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TMI Blog2015 (10) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellants : Shri P M Dave & Shri Paritosh Gupta, Advs For the Respondent : Shri Anil Gidwani, AR ORDER Per: P K Das: The relevant facts of the case, in brief, are that the assessee is engaged in the processing of Man Made fabrics from grey fabrics. From 01.4.2003, Rule 12B was inserted in Central Excise Rules, 2002 and the merchant supplier of the grey fabrics as the primary person who is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t during the period February 2003 to March 2003 and September 2003 on the basis of invoices issued by the suppliers of grey fabrics. Adjudicating authority confirmed the demand of CENVAT credit of Rs. 23,19,610/- along with interest and also imposed penalties under Rule 13(2) of Cenvat Credit Rules, 2002 road with Section 11AC of the Central Excise Act, 1944. Commissioner (Appeals) modified the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to avail credit on the basis of said invoices as per Rule 7 of Cenvat Credit Rules, as it stood at the relevant period. Commissioner (Appeals) observed that the evidences are not sufficient to conclude that the appellant are party to fraud. I find that the identical issue stands decided by the Tribunal in the case of M/s. Bhagwati Silk Mills & Others vide final order No. A/55-185/WZB/AHD/2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs/merchants on job-work basis since several years and were enjoying the deemed credit facility for the grey fabrics received from the traders/merchants up to March 31, 2003 and were paying duty after availing deemed credit granted in accordance with the notifications issued from time to time. The assessees were served with a show cause notice on the ground that during the month of June 2004 and J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als) has clearly observed that the assessee is not part to the fraud committed by the grey fabric suppliers. In this case also the grey fabric suppliers issued invoices. So, the present case is squarely covered by the decision or the Hon'ble High Court in the case of Prayagraj Dyeing & Printing Mills Pvt. Limited (supra). So, the demand of inadmissible CENVAT credit is clearly barred by limita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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