COMMISSIONER OF CENTRAL EXCISE Vs. RAJA MAGNETICS LTD.

JUDGEMENT

(1.) THE appeal by the Commissioner of Central Excise. Bangalore, under Section 35G of the Central Excise Act, 1944 [for short the Act'] against the final order No. 1296 of 2008 of the Customs, Excise and Service Tax Appellate Tribunal (for short 'CESTAT'] South Zonal Bench, Bangalore passed on 20.11.2008 in Appeal No. E/587/2008.

(2.) UNDER the impugned order, the appellate tribunal had dismissed the appeal of the revenue and affirmed the order in Appeal No. 77 of 2008 passed by the first appellate authority - the Commissioner of Central Excise [Appeals] which had been passed on 28.4.2008.

(3.) IN respect of this period, the assessee had originally claimed CENVAT credit totaling an amount of Rs. 86,607/ -. The adjudicating authority found that the assessee had availed of excess credit to the extent of Rs. 14,399/ - as on verification it was found that the supplier of the inputs to the assessee had, in fact, paid duty only for a sum of Rs. 72,222/ - in respect of the goods received by the assessee. However, the adjudicating authority disallowed a sum of Rs. 68,052/ - from out of a sum of Rs. 72,222/ - for the reason that the supplier to the assessee did not have registration in terms of Rule 9 of the Central Excise Rules, 2002 and in terms of Sub -rule [2] of Rule 9 of CENVAT Credit Rules, 2004, [for short the rules'] a credit availed of as duty paid by an unregistered dealer is not allowed as CENVAT credit and therefore a sum of Rs. 68,052/ - was disallowed.