TaxTMI 
TaxTMI 
2009 (7) TMI 581
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....appellant is engaged in the manufacture of excisable goods falling under Chapter 29 first schedule to the Central Excise Tariff Act. They purchased capital goods from one registered dealer M/s. Nerka Chemicals Pvt. Ltd. under the cover of Central excise invoices issued by the said dealer and availed credit of duty of Rs.7,72,000/-. The said dealer, in turn had purchased the goods from the manufact....
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....eir being no allegation of any fraud or collusion against them, imposition of penalties was not justified. 4. Lower authorities however held that the appellant having failed to follow the Provisions of Rule 3 and Rule 7 of the Cenvat Credit Rules, 2002/2004, which require them to take reasonable steps to ensure that the proper Central Excise Duty has been paid on the capital goods, they are liabl....
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....lso submits that there is no dispute about the Central Excise invoices issued by the said registered dealer, in which case the credit cannot be denied to them. Rule 7 requires an assessee to take reasonable steps to satisfy himself about the identity and address of the manufacturer or supplier, as the case may be, issuing documents specified in Rule 7 evidencing the payment of excess duty. In as m....
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....redit availed by such dealer is in accordance with law or not and as to whether the manufacturer, who has sent the goods to the registered dealer, has actually discharged his duty liability or not. This becomes clear from the Rule 7 which requires an assessee to take reasonable steps to satisfy himself about the identity and address of the manufacturer or supplier, as the case may be. Wherever the....