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TMI Blog2010 (1) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... utam Steel Traders, at the most, can be considered as second stage dealer and, they in turn sold the goods to M/s. Metal Trading Company. Held that- order of original authority denying credit justified. - E/683/2008-SM(BR) - 115/2010-SM(BR)(PB), - Dated:- 19-1-2010 - Shri M. Veeraiyan, Member (T) Shri S.K. Bhaskar, SDR, for the Appellant. None, for the Respondent. [Order]. - This is an appeal by the Department against the order of the Commissioner of Central Excise (Appeals) No. 149 150/CE/Appl/DLH-IV/2007 dated 17-1-2008. 2. None appears for the respondent. However, written submissions dated 11-1-2010 have been filed and the same have been taken into account. Heard the ld. DR. 3. The relevant facts, in brief, are th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on M/s. S.D.L Auto Pvt. Ltd. on the ground that there was no knowledge on the part of M/s. S.D.L. Auto Pvt. Ltd. that invoices issued by M/s. Metal Trading Company was not the valid documents for the purpose of taking credit. 4. Ld. DR submits that the manufacturer of the impugned inputs was clearly M/s. Swastika Pipe Ltd; they have issued invoices to one, M/s. Rameshwar Das Devi Dayal (Pvt.) Ltd. as the buyer; M/s. Gautam Steel Traders were shown only as consignee of the goods. In other words, M/s. Gautam Steel Traders could have only purchased from M/s. Rameshwar Das Devi Dayal i.e. from a dealer and not directly from the manufacturer. Inasmuch as they have purchased from a dealer, these inputs M/s. Gautam Steel Traders could not be con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether M/s. Rameshwar Das Devi Dayal is a registered dealer in terms of Central Excise Rules, 2002 enabling them to act as a first stage dealer for the purpose of passing on the credit. Even if they were registered as first stage dealer the status of M/s. Gautam Steel Traders becomes that of the second stage dealer insofar as the present transactions are involved. 6.2 In Cenvat Scheme, normally the indigenous inputs are required to be purchased from the manufacturer and credit of duty paid by the said manufacturer are permitted to be taken as Cenvat credit by the recipient of the inputs. Considering that the dealers are intermediary, they are permitted to be registered for the purpose of passing on the credit of duty paid by the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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