2010 (4) TMI 1046

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....ondent herein placed an order with one M/s Ishan Technologies Pvt. Ltd. (hereinafter referred to as M/s Ishan) for a 10MW Slow Speed Alternator with AVRS and Voltage Control System. The respondent received the said system under invoice dated 12.4.2003 issued by M/s Ishan showing the value of the consignment as Rs. 5,50,00,000/- and the amount of duty paid as Rs. 88,00,000/-. Based upon the said invoice, the respondent availed of the benefit of CENVAT credit of the said amount 3. Investigations by the concerned authorities revealed that the alternator had not been manufactured by M/s Ishan and accordingly, there was no clearance of the capital goods in question under the invoice issued by M/s Ishan, based on which the credit of Rs. 88 lakhs....

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.... observed that in view of the said provisions, it is the duty of the input receiver to take all reasonable steps to ensure that the duty of excise on capital goods in respect of which CENVAT credit is being availed of, has been paid by the manufacturer of such goods. That the manner in which such satisfaction has to be arrived stands explained in the explanation, which is to the effect that the manufacturer taking CENVAT credit shall take all reasonable steps to ensure that the appropriate duty of excise, as indicated in the documents accompanying the goods has been paid. The Tribunal has, as a matter of fact, found that the invoice accompanying the alternator in question showed payment of duty. That it was not revenue's case that such ....

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....e respondent. 8. Sub-rule (1) of rule 7 of the CENVAT Credit Rules, 2002, insofar as the same is relevant for the present purpose, provides that the CENVAT credit shall be taken by the manufacturer on the basis of any of the following documents, namely, an invoice issued by a manufacturer for clearance of capital goods from his factory or his depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacture in terms of the provisions of Central Excise Rules, 2002. In the facts of the present case, the Tribunal has found that it is an undisputed position that the respondent Company had received the alternator which was consigned; that....