2005 (3) TMI 249

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....the order of the Commissioner of Central Excise (Appeals) upholding demand of duty of Rs. 7,56,221/- as representing Cenvat credit wrongly availed on yellow phosphorous supplied by M/s. Pentafour Products Ltd., ordering for recovery of the same together with interest under Rule 12 of the Cenvat Credit Rules, 2001 & 2002 read with Section 11A of the Central Excise Act and imposing a penalty of equa....

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....e appellants' plea that they had taken all reasonable steps and that the input supplier confirmed under cover of their letter dated 9-4-2002 that duty was paid on the inputs after the close of the month as permitted under Rule 8 of the Central Excise Rules, 2001 & 2002, was rejected by the Joint Commissioner who confirmed the demand and imposed penalties. The Commissioner (Appeals) upheld the deni....

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....ice, bill of entry etc. The Rule provides that the person taking credit on inputs shall take all reasonable steps to ensure that they are goods on which appropriate duty as indicated in the documents accompanying the goods has been paid. Rule 8 provides that duty on goods removed from a factory or warehouse during the first fortnight of the month shall be paid by the 20th of that month and the dut....

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....her, the Indian Overseas Bank has clarified through its certificate that CVD was paid by M/s. Pentafour Products Ltd. In these circumstances, credit cannot be denied on the ground that the appellants had not taken reasonable steps to ensure that duty had been paid on the inputs in question which were used by them in the manufacture of phosphorous pentasulphide. 4. The finding of the Commissione....