2022 (2) TMI 5

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....alties on the ground that the appellant had availed cenvat credit on inputs without their receipt and use in or in relation to the manufacture of final products. 2. The brief facts of the case are that the appellant is engaged in the manufacture of Stainless-Steel Pipes & Tubes and registered with the department. On the basis of intelligence, a search has been conducted at various premises of M/s Shah Foils Limited [M/s SFL] located in Gujarat and Maharashtra by the officers of DGCEI. As per department, the search resulted in recovery of incriminating documents and pen drives indicating clandestine clearance by M/s SFL, which were seized by them. Thereafter, statement of Sh. Ramesh Mailal Shah, Director of M/s SFL and Sh. Manoj Prabhudas T....

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....gned order, learned Counsel urges - that the allegation of wrongful availment of cenvat credit is totally baseless as they have substantiated their legitimate availment of credit with various evidences. They placed reliance on the judgement passed by the Hon'ble Allahabad High Court in the case of COMMISSIONER OF C.EX., CUS & SERVICE TAX Vs. JUHI ALLOYS LTD. [2014 (302) E.L.T. 487 (ALL.)], wherein it was held that it would be impractical to require recipient to go behind the records maintained by the first stage dealer to ascertain if the original manufacturer is genuine or not. The High Court held that the cenvat credit should be allowed if the recipient acted with all reasonable diligence while procuring goods from first stage dealer. 4.....

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....dgement passed by the Hon'ble High Court of Jharkhand in the case of COMMISSIONER OF C. EX., EAST SINGHBHUM Vs. TATA MOTORS LTD. [2013 (294) E.L.T. 394 (JHAR.)], in support of the contention that the assessee cannot be expected to do the impossible act of verifying whether the supplier dealer has paid the duty on the goods to the government. 6. It is further submitted that the proceedings against one of the co-noticees, M/s Shah Foils Limited has already been dropped by this Tribunal, which is reported at [2019 (1) TMI 1162-CESTAT AHMEDABAD], so the present appeal may be allowed on this score also. 7. Learned Authorised Representative for the Revenue Ms. Tamanna Alam relies on the impugned order. 8. Having considered the rival contention....