TaxTMI 
TaxTMI 
2017 (5) TMI 1285
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....chased any duty paid goods for trading and then in their statement to the Revenue, have admitted the fact. 2. The brief facts are that during the period, under dispute April 2004 to February, 2006 as per SCN dated 13.04.2009, for the extended period, the jurisdictional Commissioner received alert circulars dated 22.06.2006, stating that M.K. Steel, proprietor S.K. Gupta, 77, N.S. Road, Kolkata had issued fake invoices to the manufacturers in various parts of India. Further stating that some invoices have been issued by them, in favour of this appellant-Rathi steel limited. Based on such circulars, the jurisdictional Superintendent vide letter dated 15.12.2008 requested the appellant to deposit Cenvat Credit along with interes....
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....e appellants have submitted monthly returns as required under Sub-Rule 5 of Rule 7 of CCR, 2002 in the prescribed form, informing regularly to the Revenue regarding receipt of the inputs and credit taken thereon. The assessee-appellant also filed copy of the ledger account and also statement of bank in support of the genuineness of the transaction. They further reiterated that the appellant manufactured excisable goods from such inputs and removed the same on payment of appropriate duty. Similar objection was made by Revenue in response to another alert circular issued by the Commissionerate, Kolkata in respect of Shri Hanuman Trading Company and the appellant had taken similar line of defence. 2.2 The learned Additional Comm....
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.... Mr. Bipin Garg, appearing for the appellant states that there is no dispute by the Revenue that the appellant have received goods with proper documents of transport being of copy which have been filed in paper book, road permit of the state of West Bengal and the state of Uttar Pradesh, which are pre-authenticated documents, issued by the said VAT departments and have to be essentially used for transport of goods from the place of the seller to the place of the buyer. Further such documents are also endorsed enroute at the check posts, set up by the Sales Tax Department at the borders and/or other places on route. It is further urged that it is not the case of Revenue that the appellant have received inputs for manufacture from other sourc....
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....eemed to have taken reasonable steps. However, even in a situation where explanation to Rule 9(3) is not attracted, it would be open to an assessee to establish independently within the meaning of the substantive part of Rule 9(3) that he had in fact taken reasonable steps. Whether assessee has in fact taken reasonable steps, is a question of fact. 4.1 The Hon'ble High Court further held that both the Commissioner(Appeals) and the Tribunal have given cogent reasons to indicate that the assessee had taken reasonable steps to ensure that the inputs in respect of which he had 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,....
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....f M.K. steels and Shree Hanuman Trading Company, wherein, S.K. Gupta had admitted that he had passed on fake Cenvat Credit. Accordingly, he prays for dismissing the appeal. 6. Having considered rival contentions, I find that it is not the case of the Revenue that the appellant have not complied with the provisions of Rule 9(3) of Cenvat Credit Rules or have been negligent on their part. It is further admitted fact that the alert circulars were issued much after the transaction had taken place. Further, I find that Revenue have not made out a case that the appellant received raw material from other sources which have been used for manufacture of excisable goods and cleared on payment of duty. Accordingly, relying on the findin....