2008 (9) TMI 744

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....ramanian, Advocate, for the Respondent. [Order]. - This is an appeal filed by the Revenue. Lower authorities dropped the proposal to disallow credit to the extent of Rs. 8,59,095/- taken by the respondent on the ground that the supplier had defaulted payment of duty for the related month. The facts of the case are that M/s. Indian Steel and Allied Products received inputs to manufacture its ....

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....se of the relevant month of supply. In the impugned order, the order of the original authority has been sustained relying on the same grounds and the Board's Circular. 2. The appeal filed by the revenue is on the basis that the respondent had not taken reasonable steps to ensure that it received only duty paid inputs. This was a requirement laid down in Rule 7(2) of Cenvat Credit Rules, 20....

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....sed. Ld. SDR reiterated the grounds taken in the appeal filed by the revenue. 4. I have carefully considered the facts of the case and the rival submissions. In the Circular relied upon by the original authority and the first appellate authority it was clarified that when the transactions of the user of the inputs were genuine and the bonafide nature of the same is not disputed, action sho....