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TMI Blog2014 (2) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... credit on which the appropriate duty of excise as indicated in the documents accompanying the goods has been paid. The Explanation to Rule 9(3) of the said Rules provides that the manufacturer shall be deemed to have been taken reasonable steps if he satisfies himself about the identity and address of the manufacturer or supplier as the goods may be showing the documents evidencing payment of excise duty either from his personal knowledge or on the basis of the certificate given by a person. Dealer is registered under Central Excise Rules and they are in existence in their address. There is no material available that the CENVAT invoices accompanied with goods are not genuine. So, in my considered opinion, the appellant had satisfied the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.15,000/- under Rule 15(1) of CENVAT Credit Rules, 2004 and Rule 15(2) of the said Rules read with Section 11AC of the Central Excise Act separately. Further, penalties were imposed on the first and second stage dealers. 3. The assessee filed appeal before Commissioner (Appeals) for setting aside the adjudication order. Revenue also filed appeal before the Commissioner (Appeals) for imposition of mandatory penalty. By the impugned order, the Commissioner (Appeals) disposed both the appeals and upheld the demand of duty along with interest and also enhanced the penalty equal amount of duty under Rule 15(2) of the said rules r/w Section 11AC of the Central Excise Act. The penalty of Rs.15,000/- imposed under Rule 15(1) of the CENVAT Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods fraudulently. He relied upon the decision of the Tribunal in the in the case of Amex Alloys Pvt. Ltd. Or. Vs. CCE - 2013 (296) ELT 229 and V.K. Enterprises Vs. CCE -2010 (249) ELT 462. 4. After hearing both sides and on perusal of the records, It is seen from the adjudication order that during the investigation Mr.P.R. Gabriel, Manager and authorized signatory of the appellant in his statement dated 24.1.2008 stated as under:- That they have purchased scrap M/s. Leadsman Enterprises vide the CENVAT invoice Nos. 36 dated 28.7.2006 and 38 dated 2.8.2006; that they have specifically placed purchase orders for scrap with M/s. Leadsman Enterprises; that they had received the scrap with CENVAT invoices and from which they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purchase price by the dealers themselves. 6. It appears that the appellant issued the purchase order for purchasing the CI scrap. They received the CI scrap accompanied with invoices indicated as CI scrap. Rule 9(3) of the CENVAT Credit Rules as it stood at the material period provides that the manufacturer of excisable goods taking CENVAT credit on inputs shall take reasonable steps to ensure that the input or capital goods in respect of which he has taken the CENVAT credit on which the appropriate duty of excise as indicated in the documents accompanying the goods has been paid. The Explanation to Rule 9(3) of the said Rules provides that the manufacturer shall be deemed to have been taken reasonable steps if he satisfies himself ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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