2006 (5) TMI 10

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....staying the operation of the order of Commissioner (Appeals). It was argued for the Revenue that M/s. Tata Steels Ltd., Mandi Gobindgarh are a registered dealer and have a stock yard at Mandi Gobindgarh. M/s. Adhunik Steels Pvt. Ltd. have been appointed as consignment agent by M/s. Tata Steels Ltd., Mandi Gobindgarh. M/s. Tata Steels Ltd. are dealing with various items of iron and steel like Tandi....

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....of proper stock and safe custody of material was the responsibility of M/s. Adhunik Steels Pvt. Ltd. All the accounts were being maintained by M/s. Adhunik Steels Pvt. Ltd. TISCO Branch office at Ludhiana, after receiving the advance payments from the customers, would issue delivery order against which the goods were delivered to the customers from the stock yard at Mandi Gobindgarh. The vehicles ....

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.... from TISCO stock yard to their premises and freight was borne by them which was paid in cash and they never checked the vehicle number and goods and sales invoices were prepared from purchase invoices. During investigation, it was found that the respondents took Modvat credit of Rs. 1,75,015/- and utilized the same on the strength of Invoice No. 77, dated 2-5-97 issued by M/s. Makhan Lal Vinod Ku....

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.... that one cannot sell the goods at a lower price than his purchase price. No material was received by the respondents from dealers and they have wrongly taken the credit. 3. On behalf of the respondents, M/s. Bhawani Shankar Castings, it was argued that they have received the goods under the vehicle number mentioned in the invoices and they have made the payment for the goods to the dealer M/s.....