https://www.taxtmi.com/caselaws?id=122353 Modvat credit could not be denied merely because the registered dealer's upstream procurement trail was doubtful, where the assessee received inputs under duty-paying documents, paid by cheque, used them in manufacture, and cleared final products on duty payment. The Tribunal found that the dealer's statement and record supported actual supply of M.S. scrap, and no evidence showed any flow back of money or any material disproving receipt of inputs. In the absence of fraud, suppression, or misstatement by the assessee, denial of credit was not justified. Penalty could not be sustained on the same facts. en-us Fri, 18 May 2007 00:00:00 +0530 Mon, 20 Nov 2017 11:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122353 Modvat credit could not be denied merely because the registered dealer's upstream procurement trail was doubtful, where the assessee received inputs under duty-paying documents, paid by cheque, used them in manufacture, and cleared final products on duty payment. The Tribunal found that the dealer's statement and record supported actual supply of M.S. scrap, and no evidence showed any flow back of money or any material disproving receipt of inputs. In the absence of fraud, suppression, or misstatement by the assessee, denial of credit was not justified. Penalty could not be sustained on the same facts. Case-Laws Central Excise Fri, 18 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122353