2010 (8) TMI 209

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....p; Shri K.K. Sharma, Advocate, for the Appellant. Shri Anil Khanna, SDR, for the Respondent. [Order (Oral)]. - These two appeals are by the same appellant and involve same issues and, therefore, they are being dealt with by common order. 2.Heard both sides. 3. The appellant was registered as a dealer in terms of Rule 2(ii) of Cenvat Credit Rules for the purpose of passing of C....

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....mposed a penalty of Rs. 10,000/- where irregular credit involved was Rs. 5109/- and in the case dealt with in Appeal No. E/864/2008 imposed a penalty of Rs. 25,000/-where irregular credit involved was Rs. 1,02,729/-. 4. Learned Advocate for the appellants submits that as the appellant received the goods as consignment agent, they were under the bona fide belief that the sale by them will ....

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....ceived by them from M/s. Swastika Pipes Ltd. They had purchased the goods only from M/s. Rameshwar Das Devi Dayal (P) Ltd. who was also a registered dealer. That being the case, the appellants posing as first stage dealer selling the goods to another dealer before the goods were sent to the manufacturer-user was not justified. When there is specific restriction that the goods can be routed through....