2011 (7) TMI 557

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....d. Thereafter the proceedings were initiated against the appellant which culminated into the impugned order whereby the cenvat credit taken has been demanded with interest and penalty equal to the cenvat credit amount wrongly availed has been imposed under Section 11AC of Central Excise Act, 1944.   2. Heard both the sides. The learned advocate on behalf of the appellants submitted that appellant had taken credit on the basis of an appropriate invoice issued by the supplier. Admittedly appellant had received the goods and installed the same. The original adjudicating authority clearly observed that the fact of purchases made from the supplier and installation of the same in the factory of the appellant is not in doubt. She also submit....

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....denied having manufactured the products for the supplier. In the absence of any manufacture of the goods supplied to the appellant, the documents issued by the supplier are totally invalid and the appellant failed to take necessary precautions to ensure that goods were supplied by the manufacturer and therefore the impugned order is sustainable.   4. I have considered the submissions made by both the sides. The cenvat credit has been denied and penalty has been imposed on the ground that the supplier did not have the infrastructure for manufacture of the goods. According to the facts that emerge from the adjudication order of the Commissioner, the supplier M/s. Ashok Electrical Stampings Pvt. Ltd. had availed cenvat credit of Rs.18,11....