TaxTMI 
TaxTMI 
2019 (3) TMI 781
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....edit on inputs viz., Pig iron, MS Scrap, Bearings, Silicon Sheets, Copper Coil etc. and were austentively purchasing the said inputs from Central Excise registered dealers. Pursuant to visit of the departmental officers to the factory premises of Ellen and further follow up investigations, it was alleged that Ellen received only non-duty paid scrap without any valid cenvat documents from M/s. Leadsman Enterprise (hereinafter referred to Leadsman), M/s. Sri Meenakshi Steels (hereinafter referred to Meenakshi) and M/s. Sri Amman Steels (hereinafter referred to Amman). It was further alleged that Ellen had fraudulently taken ineligible cenvat credit based on cenvat invoices of these three dealers who had issued invoices mentioning invoice numb....
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....an respectively. 2. Today when the matter came up for hearing, on behalf of the appellants, Ld. Consultant, Shri R. Balagopal made a number of submissions, which are summarized as under:- a) No evidences have been adduced against the appellants other than the statements to prove that Meenakshi and Amman had issued cenvatable invoices of duty paid material, had only supplied non-duty paid MS scrape, etc. and in consequence that Ellen also had wrongly availed credit on the invoices when actually they had received only non-duty paid goods. Copies of the statements were not made available to the persons involved. b) similar allegations and disputes had been made in respect of another appellant M/s. Ferro Cast Industries. There also, it was s....
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....T referred to during the course of hearing. 5. We find the Ld. Consultant is correct in his assertion that similar issue had been addressed by the Tribunal in the case of M/s. Ferro Cast Industries (supra). On going through the said decision that are pari material and therefore the ratio decidendi therein will be applicable to the present matters also. The findings as recorded in the said decisionr after considering various contentions, is as under:- "7. The undisputed fact of the case is that appellants have used scrap as their raw materials and the invoices issued by the first stage dealer to them describes the goods as scrap. It is also not disputed that appellants have paid excise duty for the goods described in the invoices. The alle....
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....aken CENVAT Credit has been suffered appropriate duty, does not mean that manufacturer/producer of excisable goods has to go to such an extent so as to make enquiries with regard to the records maintained by the first stage dealer. The relevant portion of the said judgment is reproduced as under: "7. In the present case, 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 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 bona fide purchaser of the goods for a pric....