2011 (3) TMI 1651

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....rmers falling under Chapter 85 of the schedule to the Central Excise Tariff Act, 1985. The said assessee are availing the facility of cenvat credit of duty paid on inputs and capital goods. 2. During the course of internal audit, it was observed that the assessee had taken cenvat credit on inputs viz. HR Coils, Channel, Angels etc. on the strength of the dealer's invoices issued by M/s. Bikaner Agrico, M/s. Parshvam Steel Corporation and M/s. Sanjay Steel Traders, who had issued/provided invoices in the capacity of the 1st stage as well as 2nd stage dealers. On further scrutiny, it was found that the inputs covered under the invoices were not purchased by the assessee from the said dealers who had issued the invoices. In the instant case....

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....both the sides. In this case credit has been denied on the ground that the invoice issued by 1st/2nd stage dealer was not based on the order placed on the dealer but to an intermedia namely M/s. Darmin Steel Suppliers. This view is taken on the ground that the goods were being received under the delivery challans and commercial invoices of M/s. Darmin Steel Suppliers and payments were also made only to them. On the ground that no payment was made to the 1st/2nd stage dealer and the M/s. Darmin Steel Suppliers had issued delivery challans and invoices, credit has been denied. It was submitted by the learned advocate that the invoices show the appellant as a consignee and the name of the buyer as M/s. Darmin Steel Suppliers. It is not the cas....