TMI Blog2017 (8) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants cannot be disputed. This issue has been clarified by the Board in the circular dated 15.12.2003 referred by the appellants - the Board has clarified the due to non-payment of duty by the supplier, action against the consignee to recover the CENVAT credit availed in such cases need not be resorted to as long as the bonafide nature of the transaction is not disputed. In the present case, there is no dispute about the bonafide nature of the transaction. Appeal allowed - decided in favor of appellant. - E/86943/13 - A/88464/17/SMB - Dated:- 3-7-2017 - Shri Ramesh Nair, Member (Judicial) Shri Gurudev Modham, Advocate for the appellant Shri Sanjay Hasija, Supdt. (AR) for the respondent ORDER The cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this Tribunal in Bhuwalka Steel Industries Ltd. - 2007 (212) ELT 63 (Tri-Mum). 3. Shri Sanjay Hasija, Ld. Supdt. (AR)appearing on behalf of the revenue reiterates the findings of the impugned order. He further submits that the appellant have not taken the reasonable steps as they did not verify whether the supplier has discharged the excise duty in respect of which they have availed the cenvat credit. He placed reliance on the following judgements:- Sheela Dyeing Printing Mills P. Ltd. - 2008 (232) ELT 408 (Guj) Akik Dyechem Pvt. Ltd. - 2013 (290) ELT 273 (T) 4. I have carefully considered the submission made by both sides and perused the records. I find that the fact is not under dispute that appellant have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It may be seen that as per Rule 8 of Central Excise Rules, 2002, the excise duty on the goods removed during a month shall be paid by the 5th day of the following month (by 15th in case of units in small scale sector). If the assessee fails to pay the amount of duty on goods removed within the due date, he is liable to pay the outstanding amount along with interest. Under second proviso to Rule 8(3), till such time the amount of duty outstanding and the interest payable thereon are not paid, it shall be deemed that the goods in question have been cleared without payment of duty and where such duty and interest are not paid within a period of one month within due date, the consequences and the penalties as provided in the said rules shall f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and taking up time bound action against the defaulters, range Superintendents should be asked to maintain a separate register and identify and record the cases of default, immediately on receipt of ER-1/ER-3 returns. The divisional Deputy/Assistant Commissioner should check the register regularly minimum once in two months period. 5. From the reading of the above circular, particularly para 5, the Board has clarified the due to non-[payment of duty by the supplier, action against the consignee to recover the cenvat credit availed in such cases need not be resorted to as long as the bonafide nature of the transaction is not disputed. In the present case, as stated above, there is no dispute about the bonafide nature of the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y M/s. Viraat Ispat Limited after clearance of the said goods. The issue is no more res integra and well-settled by the Tribunal in the following case law :- (i) Prachi Poly Products Ltd. v. CCE, Raigad - 2005 (186) E.L.T. 100 (Tri. - Mum) (ii) Spic Pharmaceuticals Division v. CCE., Pondicherry - 2006 (199) E.L.T. 686 (Tri. - Chennai) 4. Besides, the Central Board of Excise Customs, New Delhi in its Circular No.786-82-2003-CX, dated 15-12-2003 had clarified that the credit availed by the user-manufacturer cannot be asked to reverse the Cenvat credit availed in case of default in payment of duty by the input manufacturers. In the present case, the appellants had taken all reasonable precautions before availing Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt relied upon by ld. AR I observe that the case of S heela Dyeing (supra) wherein the facts were that the assessee was not aware of the identity and address of the supplier. In the present case, similar fact is not involved as there is no dispute about identity of the supplier, moreover the appellant have paid the bill amount to the supplier. As regards the decision of Akik Dyeing (supra) the supplier had issued bogus invoice, therefore it was held that the buyer has not taken reasonable steps as provided under Rule 7 of Cenvat Credit Rules. The fact of the present case is not identical, as the transaction is bonafide therefore, both the judgments relied upon by Ld. AR are not applicable in the facts of the present case. 7. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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