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Gillard Radio Products Pvt. Ltd., DE-OR Metal Ind Pvt. Ltd., M/s. Arihanta Metal Co., Shri Rahul Baid, Shri Sidharth Baid, M/s. Swiss Auto, M/s. Bentex Motor Control Gear Industries, M/s. Fine Technologies (india) Pvt Ltd., M/s. Mex Switchgears Pvt Ltd., Ellora Trading Ltd., M/s. Estech Enterprises, M/s. Ajay Hardware Industries P Ltd. And M/s. Woven Gold Bath Impressions Pvt. Ltd. Versus Commissioner of Central Excise, Delhi III, Delhi II, NOIDA, Lucknow, Ghaziabad And Ludhiana.

Denial of Cenvat Crredit - Bogus invoices - Issue of invoices without actual receipt of goods - Held that:- M/s. Agarwal Metal Co. / Works is a manufacturer of brass strips/ circles and supplying the same to the Registered dealers, namely, M/s. AMCo. & AMCorpn. against duty paid invoices. Thereafter, these AMCo. & AMCorpn. are supplying the goods to manufacturer buyers and description was shown in the invoices as brass sheets instead of brass circles / strips. Apart from this evidence, no other .....

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rs. In the absence of any corroborative evidence, the Cenvat credit to manufacturer buyer cannot be denied.

Cenvat credit cannot be denied to manufacturer buyers. Further, in the case of Delhi Control Service this Tribunal (2013 (8) TMI 921 - CESTAT NEW DELHI) has taken the same view. With these observations, the orders of denial of Cenvat credit to manufacturer buyers and consequently demand of duty along with interest are not sustainable. Therefore, the penalties on manufacturer bu .....

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ed:- 20-4-2015 - Shri Ashok Jindal, Member (Judicial) Excise Appeal No. 1703 - 1708, 1870 of 2010 - Ex (SM), Excise Appeal No. 1957-1959 of 2010 - Ex (SM) , Excise Appeal No. 3437 of 2010 - Ex (SM) , Excise Appeal No. 3440 of 2010 - Ex (SM) , Excise Appeal No. 3444, 3445 & 3446 of 2010 - Ex (SM) , Excise Appeal No. 3447, 3448 & 3449 of 2010 - Ex (SM) , Excise Appeal No. 3450, 3451, 3452 of 2010 - Ex (SM) , Excise Appeal No. 3467 of 2010 - Ex (SM) , Excise Appeal No. 3468 of 2010 - Ex (SM .....

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Appeal No. 559 - 561 of 2011 - Ex (SM) , Excise Appeal No. 562 - 564 of 2011 - Ex (SM) , Excise Appeal No. 565 - 567 of 2011 - Ex (SM) , Excise Appeal No. 568 - 570 of 2011 - Ex (SM) , Excise Appeal No. 571 - 573 of 2011 - Ex (SM) , Excise Appeal No. 574 - 576 of 2011 - Ex (SM) , Excise Appeal No. 580 - 582 of 2011 - Ex (SM) , Excise Appeal No. 583- 585 of 2011 - Ex (SM) , Excise Appeal No. 586- 588 of 2011 - Ex (SM) , Excise Appeal No. 589- 591 of 2011 - Ex (SM) , Excise Appeal No. 595- 597 of .....

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No. 632 of 2011 - Ex (SM) , Excise Appeal No. 647 of 2011 - Ex (SM) , Excise Appeal No. 708 of 2011 - Ex (SM) , Excise Appeal No. 1021 of 2011 - Ex (SM) , Excise Appeal No. 1023-1025 of 2011 - Ex (SM) , Excise Appeal No. 1026-1028 of 2011 - Ex (SM) , Excise Appeal No. 1029-1031 of 2011 - Ex (SM) , Excise Appeal No. 2895 -2897 of 2011 - Ex (SM) , Excise Appeal No. 1527 of 2012 - Ex (SM) , Excise Appeal No. 1611- 1613 of 2012 - Ex (SM) , Excise Appeal No. 55960, 56156 - 56158 of 2013 - Ex (SM) , .....

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appellants namely, Arihanta Metal Company, Shri Rahul Baid and Shri Sidharth Baid are in appeals against the impugned orders. 2. The manufacturer buyers namely, Woven Gold Bath Impressions P Ltd.; M/s. DE-OR Metal Pvt Ltd.; M/s. Fine Technology (India) P Ltd.; and M/s. Gillard Radio Products Pvt Ltd.; M/s. Mex Switchgears Pvt. Ltd. are in appeal against the order of demand of interest and imposing the penalties. 3. The manufacturing buyers namely, M/s. Neha Enterprises, Swiss Auto, Bentex Motor .....

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Commissioner (Appeals) against M/s. Arihanta Metal Corpn, Sidharth Baid and Shri Rahul Baid. 5. As the issue involved in all the appeals is common, therefore all the appeals are taken up together for consideration and disposed of by a common order. 6. The facts of the case are that an investigation was conducted at the premises of M/s. Arihanta Metal Co.(AMCo), M/s. Arihanta Metal Corpn. (AMCorpn). It was revealed in the investigation that M/s. AMCo. & AMCorpn. are procuring brass circles, .....

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ed to the manufacturer buyers, M/s. AMCo., M/s. AMCorpn. Shri Sidharth Baid and Shri Rahul Baid for denial of inadmissible Cenvat credit availed by manufacturer of buyers. Consequently duty on that account along with interest were demanded and proposing penalties to be imposed on the manufacture buyers, M/s. AMCo. & AMCorpn. Shri Rahul Baid and Shri Sidharth Baid. The show cause notices were adjudicated, the demands of duty proposed in the show cuasee notices were confirmed on the manufactur .....

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Against these orders, the manufacturer buyers, AMCo., Shri Sidharth Baid and Shri Rahul Baid are in appeals before me. 7. In the case of invoices issued by M/s. Arihanta Metal Corpn., the amount paid by M/s. AM Corpn. was appropriated, the demand against manufacturer buyers were set aside and penalties imposed on manufacturer buyers, M/s. AM Corpn., Shri Sidharth Baid and Shri Rahul Baid were also dropped. Against these orders, Revenue is in appeal before me. 8. Therefore all the assessee are be .....

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show in the invoices issued AMCo. & AMCorpn. is as per the goods received by them and M/s. AMCo. & AMCorpn. in their invoices have shown the description of goods of the manufacturer supplier is also brass sheets. Therefore, all the manufacturer buyers have taken Cenvat credit as per law. Moreover, the show cause notices have been issued by invoking the extended period of limitation. Therefore, the demands pertained to extended period of limitation are not sustainable. They also submitte .....

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re is no denial of the fact that the description of the goods was mentioned in the invoices issued by the registered dealer as only brass sheet and the same stands reflected by the appellant in their statutory records. The same have also been used in the manufacture of final products, on which duty has been paid by them. As such, I find no justifiable reasons to interfere in the order of the Commissioner (Appeals). Revenue s appeal is rejected. Therefore, the Cenvat credit disallowed to the manu .....

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the premise that the invoices issued by AMCo. & AMCorpn. have shown the description as brass sheets instead of brass circles / strips. For this, it is contended that brass sheet, brass circles / strips are falling under the same CTH and rate of duty is also same. This was only a clerical mistake of the clerk preparing the invoices who has shown description as brass sheets instead of brass circles/ strips. Therefore, without adducing any corroborative evidence, the penalty on AMCo. & AMCo .....

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nterest and penalties are imposable. It is also submitted that M/s. AMCo. & AMCorpn. has paid certain amount during the course of investigation and same has not been contested which shows their intention to avail inadmissible credit by M/s AMCo. & AMCorpn. and consequently passing on the same to manufacturing buyer without supply of the goods. Therefore, the impugned orders dropping the proceedings against the manufacturer buyers and dropping penalties against Arihanta Metal Corpn., Shri .....

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st duty paid invoices. Thereafter, these AMCo. & AMCorpn. are supplying the goods to manufacturer buyers and description was shown in the invoices as brass sheets instead of brass circles / strips. Apart from this evidence, no other corroborative evidence has been produced by the Revenue to allege that manufacturer buyers have received the invoices only but have not received the goods against these invoices. No investigation has been done at the end of transporter or check post to ascertain .....

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cision of Omex Auto Ltd. vs. CCE, Delhi III reported in [2012 (280) ELT 440 (Tri-Del)] wherein this Tribunal has observed as under: 6. On careful consideration of the submissions made by both sides, I find that the short issue involved in this case is whether in the facts and circumstances of the case, the appellants are entitled to take cenvat credit on the strength of invoices where the goods described as C.R. Sheets instead of H.R. sheets or not? It is an admitted fact that the appellants hav .....

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e invoice, name and address of the factory or warehouse or premises, the assessee is entitled to take cenvat credit. Although the description of the goods does not match with the actual receipt of the goods but the fact is not denied that these H.R. sheets have been received by the appellants in their factory. Therefore, the appellants are entitled to take cenvat credit on the goods received by them. It is not the allegation that the appellants had procured H.R. Sheets clandestinely without cove .....

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appellants received the goods, therefore, the appellants are entitled to take credit. Hence, the impugned order is set aside and the appeal is allowed with consequential benefits. 16. I am of the view that Cenvat credit cannot be denied to manufacturer buyers. Further, in the case of Delhi Control Service this Tribunal (supra) has taken the same view. With these observations, the orders of denial of Cenvat credit to manufacturer buyers and consequently demand of duty along with interest are not .....

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