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TMI Blog2011 (7) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... e original adjudicating authority as per para 2 of his order imposing penalty equivalent to the credit or by option avail benefit of 25% of penalty if they pay up the duty demanded along with the interest and the reduced penalty within 30 days - The Revenue s appeal is upheld accordingly. - E/602/10 - - - Dated:- 25-7-2011 - Hon ble Dr. P. Babu, Member (Technical) Appellant : Shri R. Nagar, SDR Per: Dr. P. Babu: M/s. Shree Vinayak Silk Mills, Surat are engaged in the manufacture of processed manmade fabrics. It was detected that they had availed cenvat credit on the invoices issued by 12 units or suppliers of grey fabrics totally amounting to Rs.6,89,682/-. Subsequent enquiries showed that these units or suppliers did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the original order may be restored. 2. The defence of the respondents was that they were a bonafide job worker and keep trust on the merchant manufacturers. They had received grey fabrics along with excise invoices with challans of traders and entire transactions duly recorded by them in the records. It was argued that they had taken all reasonable steps as given in Rule 9(3) of Cenvat Credit Rules, 2002. 3. The findings of the original adjudicating authority need to be flagged here. The findings are as follows: 9. The noticee for their own convenience didn t verify the identity and address of the units under whose invoice the cenvat credit had been taken and utilized. The noticee is therefore required to pay the amount take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in pari-materia with Erstwhile Rule 57(1)(4) of the modvat scheme. The Hon ble High Court of Mumbai while analyzing the latter Rule in the case of CCE Vs. Fibre Foils Ltd. reported in 2009 (241) ELT 201 (Bom.) (HC) held that the penalty had to be imposed by the adjudicating authority on the basis of the material available and not on the basis of the defence which the assessee might have taken. 7. The facts and legal position being so, I find that the Revenue has a very strong case in their favour. The charges brought out in the show cause notice are well sustained for which the respondents require adequate penalty. I therefore order the restoration of penalty imposed by the original adjudicating authority as per para 2 of his order i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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