2014 (2) TMI 7

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....ri Bipin Garg, learned advocate appearing for the respondent. 3. As per fact on record all the Respondents were procuring various raw material such as Palm Kernel Fatty Acid, Coconut Acid, Palm Acid oils etc. from registered dealer M/s. Harsh & Company. The said dealer was, in terms procuring the said raw material from M/s. Gaytri Traders. The said Gaytri Traders was a registered dealer with Department with effect from 07.02.2009. However, investigations made at the end of M/s Gaytri Traders revealed that they had vacated the said registered premises on 30.04.09. As such their registration was was revoked abinitio i.e. from the initial date 07.02.09, vide order-in-original dated 31.12.09. 4. As a result of above development, proceedin....

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.... is obvious that the inputs on which Cenvat credit availed by the appellants were received by them in their factory premises, the same was used for manufacture of final products on which appropriate central excise duty was paid by the appellants, appropriate central excise duty was paid on the said inputs and the relevant invoices were containing all the relevant information as prescribed under the Cenvat credit rules, 2004. The payment of the inputs was made through cheques by the appellants to M/s. Harsh & Company, 292, Chandpol Bazar, Jaipur. 11. The Rule 9(5) of the Cenvat credit Rules, 2004 read as that-The manufacturer of final products or the provider of output service shall maintain proper records for the receipt, disposal, consu....

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....y, inputs are in fact received and documents prima facie appear to be genuine. Making payment by cheque to seller will prove his bona fide. Moreover in the present case it cannot be presumed that the appellants were verify the genuineness of the first stage dealer when they very much aware about their second stage dealer i.e. M/s. Harsh & Company, 292, Chandpol Bazar, Jaipur from whom they had received the said inputs. From the above, I am of the considered view that the appellants have discharged their burden as prescribed under Rule 9(5) of the Cenvat Credit Rules, 2004. 12. Further, I observe that there is no dispute that the appellants have taken the Cenvat Credit on the basis of the invoices issued by the M/s. Harsh & Company, 292, ....