9911796707
TMI Blog2012 (12) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... Department – Held that:- They cannot be given duty credit, if the supplier from whom they have purchased the goods has not paid the duty to the Central Excise Department in the first place - If the appellants have been given invoices showing payment of duty without the supplier having paid the duty, there are legal recourses available to the appellants to obtain compensation from the supplier. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants have also paid the value of the goods as well as duty to the supplier. Hence, the subsequent investigation to the effect that the impugned goods were purchased from the market and that there were no duty paying documents evidencing payment of duty to the Central Excise Department cannot be used against the appellants who are innocent buyers of the impugned goods. He requests for waiver of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount of revenue has been lost to the exchequer, as credit has been taken on the basis of the said dealer s invoices without the same having been backed with any payment of duty to the exchequer. 4. After hearing both sides and perusal of the case records including the cited case laws, I find that in the case of Muzaffarnagar Pipe Industries (supra), the Hon ble High Court has dealt with a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be any cascading effect by such multi-stage duty payment. This scheme cannot allow credit out of public revenue, when the input duty as not been paid initially into the public revenue. It would be similar to a case of taking a refund from the Income Tax Department without having paid the tax in the first instance. In case, the appellants are proved to be innocent of any fraudulent transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omeone who has duped them by giving them such invoices on which credit cannot be taken by them. 5. Under the circumstances, I am of the view that the interest of revenue has to be safeguarded. At the same time, taking into account the financial difficulties pleaded by the learned consultant, I direct the appellants to pre-deposit only 50% of the duty amount before the appeal can be heard on meri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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