Cenvat credit remains admissible despite alleged fake supplier details when Rule 7(2) precautions and supporting evidence are shown.

Cenvat credit taken on duty-paying documents was treated as admissible where the assessee received goods through a registered dealer and showed that the precautions required under Rule 7(2) of the Cenvat Credit Rules, 2002 had been taken. The alleged fake or fictitious nature of the supplier's identity and address was not, by itself, enough to deny credit when the transaction was supported by the available evidence, including a bank certificate. On that basis, the credit was held to be in order and consequential relief followed.

---

---

Issues: Whether Cenvat credit taken on the basis of duty paying documents was admissible when the supplier's identity and address were alleged to be fake and fictitious, and whether the assessee had taken the precautions required under Rule 7(2) of the Cenvat Credit Rules, 2002.

Analysis: The evidence showed that the assessee had received the goods through a registered dealer and had taken precautions in accordance with Rule 7(2) of the Cenvat Credit Rules, 2002. A bank certificate was also produced to support the transaction. On this material, the credit could not be disallowed merely on the allegation that the supplier's particulars were found to be fake on verification.

Conclusion: The credit was held to be in order and the appeal was allowed with consequential relief.

---