Appellate Tribunal dismisses appeal on Cenvat credit for purchased inputs

The Appellate Tribunal CESTAT NEW DELHI dismissed Revenue's appeal regarding Cenvat credit availed by the appellant on inputs purchased. The goods purchased were not manufactured by the seller, but there was no proof that duty paid did not reach the treasury. Penalizing the appellant by disallowing the credit could be unjust.

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The Appellate Tribunal CESTAT NEW DELHI dismissed Revenue's appeal against an appellate order allowing Cenvat credit availed by the appellant on inputs purchased from a manufacturer. The goods purchased did not result from manufacture in the hands of the seller, but there was no evidence that duty paid by the appellant did not go to the treasury. Penalizing the appellant by disallowing the Cenvat credit could be prejudicial to justice.

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