2006 (12) TMI 407

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.... JDR, for the Respondent. [Order]. - This is an appeal against the order of the Commissioner (Appeals) No. VP/210/SRT-I/2005, dated 29-4-2005 which confirmed the reversal of Cenvat credit as ordered by the OIO no. dated 27-1-2005 but reduced the penalty. 2. Heard both sides. 3. The relevant facts, in brief, are as follows. (a)     M/s. Shiv Enterprises,....

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....sacted through an agent and paid 73 cheques amounting to Rs. 81,03,777/- in the name of M/s. Ankit Textiles. (e)     As the credit taken on the basis of invoices issued by M/s. Ankit Textiles which are not genuine and authenticated, M/s.  Shiv Enterprises was ordered by the original authority to pay back Rs. 7,36,707/- along with interest and he also imposed Rs. 7,36,70....

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....son. 5. Ld. DR submits that the spirit of Rule 7 envisages that whoever takes credit should take precautions that the person who has passed on credit has indeed paid the duty at his end. 6. I find that M/s. Ankit Textiles has given their address as U-9, New Ashirvad Square, Opposite Sosyo Circle, Udhana Magdalla Road, Surat. They have taken provisional registration having Provision....

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....s to enable taking credit. 8. Normally duty paid on the inputs, is passed on as a credit directly by the manufacturer of inputs to manufacturer of final goods. As a dealer, who is empowered to pass on the credit by becoming an intermediary between the manufacturer of inputs and manufacturer of finished goods, he is required to take reasonable precautions. Credit passing is not just on rece....