TaxTMI 
TaxTMI 
2019 (5) TMI 468
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....he Adjudicating Authority disallowed the cenvat credit for the period 2009- 10 and also imposed penalty of equal amount under Section 78 of the Finance Act, 1994 read with Rule 15 (3) of Cenvat Credit Rules, 2004 and penalty of Rs. 10,000/- under Section 77 of the Finance Act, 1994. 2. On appeal, the ld.Commissioner (Appeals) rejected the appeal filed by the assessee. Hence the present appeal before the Tribunal. 3.1 The ld.Counsel appearing on behalf of the appellant, submits that the appellant has not contravened any Rules as made under Cenvat Credit Rules, 2004 and duly availed cenvat credit, which should not have been denied to the appellant on the basis of vague assumptions. He further submits that for the purpose of output service....
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.... Vs. M/s Juhi Alloys Ltd. reported in 2014 (302) ELT 487. 3.2 The ld.Counsel also submits that they are not disputing the demand of Rs. 21,578/-, which was confirmed in the adjudication order along with interest and equal amount of penalty was imposed under Section 78 of Finance Act, 1994. He submits that they have paid the entire amount of demand of Rs. 21,578/- along with interest of Rs. 21,501/- on 15.02.2016, which stands appropriated by the Adjudicating Authority vide Corrigendum dated 25.05.2016. 4. The ld.D.R. on behalf of the Revenue, reiterates the order of the lower authorities and made the Bench go through at Page 80 of the Appeal Paper Book, which is a part of the Order-in-Original, wherein the statement of Mr.Sandip Khan, o....
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....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 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 as the statutory records establish the receipt of the goods. In such a situation, it would be impractical....
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.... 9. Ultimately, the issue in each case is whether, within the meaning of Rule 9(3) of the Rules of 2004, the assessee has taken reasonable steps to ensure that the inputs in respect of which he has taken Cenvat credit were goods on which appropriate duty of excise was paid. Once it is demonstrated that reasonable steps had been taken, which is a question of fact in each case, it would be contrary to the Rules to cast an impossible or impractical burden on the assessee". 8. It is my considered view that the idea of introducing cenvat credit had a preconceived motive of reducing cascading effects of indirect taxes, as a result of which, the ultimate consumers will have final products and services at a much lower price. The idea was conceiv....