2013 (7) TMI 561

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....f penalty of identical amount upon M/s. Juhi Alloys Ltd. and the penalties of Rs.10,000/and Rs.2,000/imposed upon Shri Yogesh Agarwal, Director and Shri Anil Kumar Shukla, authorised signatory. 2. As per facts on record, M/s. Juhi Alloys Ltd. is engaged in the manufacture of MS bars, rounds, SS Flat and SS products. They were availing Cenvat credit of duty paid on the inputs i.e. MS ingots. The same were being procured by the said assessee from a registered dealer M/s. M K Steel, Kolkata. 3. Certain inquiries were conducted at the end of M/s. M K Steel and it was found that they were showing procurement of the goods from a manufacturer M/s. Sarla Ispat (P) Ltd., Durgapur, West Bengal. Further, inquiries revealed that invoices issued by M/....

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....e that the said inputs covered by the invoices raised by M/s. M K Steels Ltd. stand received by M/s. Juhi Alloys and duly entered in their Cenvat credit account. They have further been used in the manufacture of final product of M/s. Juhi Alloys which stand cleared on payment of duty by them. The appellate authority has observed that a buyer can take steps which are in their control and he cannot be expected to verify the records of the suppliers broker to check whether infact the supplier has paid duty on the goods supplied by him or not. As such, he has relied upon the Board's Circular being Circular No. 776/82/03-CX dated 15.12.03 laying down that as long as bonafide nature of the consignee transaction is not doubted, credit should not b....