https://www.taxtmi.com/caselaws?id=162718 Cenvat credit cannot be denied to a bona fide purchaser merely because the supplier is alleged to have availed irregular credit, where the buyer paid for the goods and there is no evidence of any flow back to the supplier. The CBEC circular indicates that reversal or recovery should not be pursued against the consignee in a genuine transaction and that action, where appropriate, lies against the manufacturer-supplier. Consistently, credit taken on duty-paid goods received under invoices cannot be denied absent fraud or suppression by the purchaser. On these facts, denial of credit was unjustified and the penalty could not be sustained. en-us Mon, 20 Aug 2007 00:00:00 +0530 Fri, 13 Oct 2017 12:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=162718 Cenvat credit cannot be denied to a bona fide purchaser merely because the supplier is alleged to have availed irregular credit, where the buyer paid for the goods and there is no evidence of any flow back to the supplier. The CBEC circular indicates that reversal or recovery should not be pursued against the consignee in a genuine transaction and that action, where appropriate, lies against the manufacturer-supplier. Consistently, credit taken on duty-paid goods received under invoices cannot be denied absent fraud or suppression by the purchaser. On these facts, denial of credit was unjustified and the penalty could not be sustained. Case-Laws Central Excise Mon, 20 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=162718