Case Law Details
Marco Blowers (India) Pvt Ltd Vs Assistant Commissioner, Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that it was not correct to disallow credit on the strength of invoices issued by unregistered dealer (intermediate supplier), when actual receipt of goods was not disputed.
Facts- The appellant is a manufacturer exporter of agricultural machinery falling under Chapter 84. They source raw materials through a registered dealer.
It is the case of the department that the appellant had sourced only the Cenvatable Credit invoices without actual receipt of the goods and thereby contravened the various provisions of the Act and the Rules and availed the said Cenvat Credit not due on the strength of the eight invoices issued by the registered dealer.
Conclusion- The impugned goods have been found to be duly accounted for in statutory records, payments made, transportation details indicated in the invoices and as there is not an iota of evidence to suggest non-receipt of goods by the appellants, Cenvat Credit therefore cannot be denied. Also since it is not the case that no goods were produced by the appellants and also under the circumstances no alternative receipt/supply of goods for such manufacture has been brought out by the department, the charge levelled gets demolished under its own weight.
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