RISHABH INDUSTRIES Vs. COMMISSIONER OF CUSTOMS, CENTRAL

JUDGEMENT

(1.) THIS stay application is directed against the confirmation of demand of Rs. 80,28,546/ - and equivalent amount of penalty. Since the issue involved in this case is in a narrow compass, the application for waiver of pre -deposit of the amount is allowed and we take up the appeal itself for disposal.

(2.) THE issue involved in this case is regarding the denial of Cenvat Credit to the appellants. The Cenvat Credit is sought to be denied to the appellant on the ground that the appellant had availed Cenvat Credit on the invoices issued by one M/s. J and J Precision Industries have cleared the final products on payment of duty, by availing irregular and illegible Cenvat Credit on the inputs received by them. The current appellant is one of the purchasers of the final product is cleared by M/s. J.&J Precision Industries.

(3.) CONSIDERED the submissions made by both sides and perused the records. The contention of the appellant is that they had taken reasonable care to verify that the credit availed by them is in accordance with the provisions of Rule 9 of the Cenvat Credit Rules. It is also submitted that they have paid for the entire quantity of the inputs purchased by them from the supplier. On the other hand the Ld. JDR submits that if the duty is paid availing/ Cenvat credit, fraudulently and willfully by supplier, then the appellant cannot be allowed to take credit.