2004 (12) TMI 85 - AT - Central Excise

It is well settled credit to be taken is the actual duty paid and that the buyer has no responsibility in regard to ensuring that duty has been correctly paid by the manufacturer of the inputs. The rule permits variation of Modvat credit only on account of a finding in a proceeding against the supplier of the inputs that the duty has not been correctly paid. Thus variation of Modvat credit amount can be consequential only.

Summary

The appellant, a manufacturer of Nuts and bolts, was denied credit of Central Excise duty on inputs received from a supplier. The Commissioner ruled in favor of the appellant, stating that there was no ground for denial of credit. The Revenue's appeal challenging this decision was rejected by the Appellate Tribunal CESTAT, New Delhi.