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TMI Blog2009 (2) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... ll after endorsement by the supplier, this aspect was not taken into consideration while discussing the responsibility of the manufacturer under Rule 7 of Cenvat Credit Rules. It is his submission that the facts of the case are different as compared to the case of M/s. Sheela Dyeing and Printing Mills Pvt. Ltd. [2008 (232) E.L.T. 408 (Guj.)] on the basis of which the order was passed. 2.2 He also submits that Dhanlaxmi Textiles was in existence and in support of his contention he submits a letter written by Dhanlaxmi Textiles to the Assistant Commissioner on 31-3-2005. 3. On the other hand learned S.D.R., on behalf of Revenue submitted that the facts are similar to Sheela Dyeing and Printing Mills Pvt. Ltd. and in the case also the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by him. The rule does not make a distinction between a person who has received the goods directly from the buyer or a person who has received the goods on the basis of interim by a merchant manufacturer. The observations of Hon ble Gujarat High Court in Para 11 as submitted by the learned D.R. are relevant and hence are reproduced below :- 11. Thus, reasonable steps as envisaged under the aforesaid provision are that the manufacturer or producer taking Cenvat credit on the inputs or capital goods received by him should satisfy himself about the identity and address of the manufacturer or supplier, as the case may be, who has issued the documents specified in Rule 7, either from his personal knowledge; or on the strength of a certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been paid by the supplier of the goods (the issuer of the invoice) is on the applicant only. The learned advocate also submitted that Board s Circular No. 713/29/2003-CX, dated 7-5-2003 supports his view that the traders of textiles and textiles articles can endorse the goods in full in favour of a manufacturer without obtaining registration. This clarification was issued by the Board in view of the fact that field formations were insisting that invoices cannot be endorsed by a merchant manufacturer and he should obtain a registration as a dealer and he should receive the goods in the premises. This was basically a trade facilitation measure and does not interpret the provisions of Cenvat Credit Rules and the obligations of the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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