TaxTMI 
TaxTMI 
2014 (5) TMI 949
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....xcise Tariff Act, 1985. They had availed Cenvat credit on duty paid in respect of various machines received by them under the cover of invoices issued by three manufacturers M/s. Hindustan Electronics, Ghaziabad, M/s. Kumar Abhishek Engineering Co. P Ltd., Ghaziabad and M/s. Krishna Machines and Tools, Ghaziabad. 3. It is seen that investigation were conducted by the department at the end of the said manufacturer and the statements of their representative were recorded. The Revenue found out that said three suppliers of the machines were not actually manufacturing the goods and no Central Excise duty strand paid by them. Accordingly, the appellants were not entitled to the credit of duty reflected in the invoices under the cover of which t....
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....oods. They also relied on material receipt notes showing that said capital goods have actually been received by them and used by them. As such, if the supplier has not paid any duty and has wrongly shown the duty payment particulars in the invoices, the Revenues remedy lies at their end. 7. Learned DR appearing for the Revenue has reiterated all the reasoning of the authorities below by submitting that inasmuch as the department has clearly produced evidence that the said supplier of the goods have not actually manufactured the same and have not paid any Central Excise duty, the credit stand rightly disallowed by the authorities below. 8. After appreciating the submissions made by both the sides, and after going through the impugned order....
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....st the said invoices were not available in the factory of the appellants. Moreover, the department has not corroborated with any evidence from where these capital goods were procured, if they are not procured against the impugned invoices. The only allegation in this case that the supplier has done some 'ghapla' of central excise duty. In that case, if at all any demand is to be made that is to be against the supplier M/s. Hindustan Electronics. The appellants have taken due care while procuring capital goods. Hence, in the facts and circumstances of this case, the duty demand and penalties are not sustainable. Applying the ratio of the decisions of the Tribunal to the facts of the present case, which are identical, I find that there is no....