2010 (11) TMI 819

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....Cenvat Credit on Central Excise duty paying documents of Hot Rolled Trimming (HRT) with an intent to evade payment of Central Excise Duty from PLA Account at the time of clearance of their final products. The HRT were not physically received and used, for its final products but were diverted and sold to various parties in the local market. The lower authorities confirmed the demand along with interest and penalty. Against the said order, the appellants are in appeal. 3. The learned Advocate appearing on behalf of the appellants submitted that the appellants have procured the said input against the duty paid invoice issued by the second stage dealer (M/s. Nagpal Steels) and the same has been cleared after processing on payment of dut....

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.... by the user manufacturer, it is clarified that action against the consignee to reverse/recover the Cenvat Credit availed of in such cases need not be restored to as long as the bona fide nature of the consignee's transaction is not in dispute. In the case of supplier has received payment from the buyer, (including the amount shown as duty of excise) i.e. the person taking CENVAT Credit has made payment of invoice amount action should also be taken against the supplier under Section 11D and HDD of the Central Excise Act, 1944. Hence, the demands are not sustainable. 4. On the other hand, the learned DR submitted that it is a case of M/s. Ispat Industries Ltd. sold the HRT through auction to M/s. Shree Durga Iron & Steel, who diverte....