TaxTMI 
TaxTMI 
2017 (2) TMI 144
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....se duty. The appellant claimed Cenvat Credit to the tune of Rs. 11,91,360/- in respect of those capital goods. Accounts of M/s. Ashok Electrical Stampings Pvt. Ltd. was scrutinized and the departmental investigation revealed that M/s. Ashok Electrical Stampings Pvt. Ltd. did not have capacity to produce that much quantity of capital goods regarding which the appellant had availed cenvat credit. Accordingly, show cause notice was issued to both the appellant and M/s. Ashok Electrical Stampings Pvt. Ltd. The appellant as well as M/s. Ashok Electrical Stampings Pvt. Ltd. contested the show cause notice. The adjudication process however culminated into confirmation of demand of against the appellant along with interest and equal amount of penal....
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....hing and nobody should be permitted to reap the bona fide duty fraud committed by anybody. 5. With the above background I have heard Ms. Rinki Arora, Advocate for the Appellants and Shri R.K. Mishra, DR for the Respondent. 6. The Submission of Ld. Counsel is that the appellant has availed Cenvat Credit on the basis of invoices issued by M/s. Ashok Electrical Stampings Pvt. Ltd. These invoices are supported by purchase orders, the transport documents, register, ledger account as well as bank payment documents. These documents indicate that they have purchased the impugned goods bonafidely from the supplier and made payment through banking channels. There is no allegation that the goods have not been received or that the excise duty has....
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....ot have been received by the appellant since it is established that the supplier had not undertaken manufacturing. 9. The submission of the appellant is that they have received the impugned goods on which Cenvat Credit was availed. This is evidenced by the transport documents produced by them issued by M/s. Shivam Transport. Their further submission is that goods were procured on the basis of purchase orders and invoices evidencing the description of the goods as well as payment of excess duty thereof by the supplier, It is also on record that the appellants paid for purchase through banking channels. Both the authorities below have denied Cenvat Credit only for the reason that the goods have not been manufactured by the supplier neither....
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....missioner (A) and the Tribunal have given cogent reasons to indicate that the assessee to taken reasonable steps to ensure that the inputs in respect of which he has taken the Cenvat Credit are goods on which the appropriate duty of excise, as indicated in the documents accompanying the goods, has been paid. Admittedly, in the present case, the assessee was a bonafide purchaser of the goods for a price which included the duty element and payment was made by cheque. The assessee had received the inputs which were entered in the statutory records maintained by the assessee. The goods were demonstrated to have travelled to the premises of the assessee under the cover of Form 31 issued by the Trade Tax Department and the ledger account as well ....