2009 (9) TMI 400

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....nterest and imposing penalty of Rs.11,59,809/- was set aside. [Order per: M. Veeraiyan, Member (T)]. - This is an appeal filed by the department against the order of the Commissioner (Appeals) dated 14-9-2004 by which the order of the original authority dated 6-8-2004 confirming the demand of Rs.11,59,809/- under Rule 57-I of the Rules along with interest and imposing penalty of Rs.11,59,809/- was set aside. 2. Heard both sides. 3. The respondent is a Private Limited company, who at their Mandi Gobindgarh address has registered themselves with the Excise authorities as a dealer of excisable goods for the purpose of passing on Cenvat credit. They have shown receipt of the goods and also have shown supply to their own factory at Parw....

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....wed the appeal. 5. The learned DR submits that the supplier, namely, M/s. Ambica Steel Industries did not have any manufacturing facilities. Therefore, the question of their generating scrap and paying duty on the said scrap and supplying the same to the respondents at Mandi Gobindgarh address and the respondent as dealer transporting the same to the respondents' factory at Parwanoo does not arise. Under the circumstances, the credit availed by them is irregular and the order of the original authority should not have been set aside by the Commissioner (Appeals). 6. The learned Advocate for the respondents submits that the decision taken against the M/s. Ambica Steel Industries about lack of manufacturing facility may not be sufficient....