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TMI Blog2017 (3) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... o also there is no case that respondents did not pay duty on the inputs - if passing on the credit by the dealer was irregular, it is the dealer who has to be proceeded against and not the respondent since the respondent has availed credit on the invoices which have been issued by the dealer - appeal dismissed - decided against Revenue. - E/1733/2012-SM - Final Order No. A/ 30416 / 2017 - Dated:- 21-3-2017 - Ms. Sulekha Beevi, C.S., Member (Judicial) Shri P. S. Reddy, Asst. Commissioner(AR) for the Appellant Shri M.V. Sridhar, Advocate for the Respondent ORDER [ Order Per: Sulekha Beevi, C.S. ] The above appeal is filed by the Department against the order passed by Commissioner(Appeals) who set aside the demand, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Corporation, Secundarabad. The said dealers in turn procured materials from M/s. Sheetal Steels Ltd. On verification, it was found that the description of the material in the delivery challan issued by M/s. Sheetal Steels was mentioned as Channel 250 mm, 300 mm; plate 6 mm, 3mm, 12mm, 10mm, 16mm; flats 12mmX1250X63. Thus the materials procured by the dealer showed the above description in the delivery challan whereas the CENVAT invoices issued by the dealer and raised in favour of the respondent showed the description of the materials as 40mm thickness. Therefore it is evident that the materials procured by the dealer from the manufacturer and supplied to the respondent are different. Therefore the respondent has availed CENVAT credit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the invoices on which the respondent has taken credit. Generally, the dealers do not give the dimensional figures in the excise invoices and only the description of the materials / classification is shown in the invoices. The invoices have been properly accounted in the RG23 register of the respondent and there is no discrepancy in the statutory records. The respondents cannot be called upon to answer the lapses if any at the end of the registered dealer. 5. I have heard the submissions made before me. The crux of the allegation by the Department is that the dimension of the materials shown in the delivery challans issued by M/s. Sheetal Steels to the registered dealer (M/s. Suraj Metal Corporation) did not match with the dimensions sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the same directly from the manufacturers can be fully accepted. In the process, it is possible that the material procured by the dealers were subject to certain simple processes like cutting to the required dimension (which did not amount to manufacture). Hence, the Appellants contention that the variation in description in certain cases was an account of such processes which did not amount to manufacture (as they placed order for material with specific dimensions), can be accepted. iii. Infact, the original authority had observed (in para 23 of the impugned order) that the Appellants had availed CENVAT credit on the dealers invoices. This aspect was also reiterated in para 29. The observations of the original authority in para 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. The Department has no case that they have not used the materials supplied on the invoices in the production of final products. So also there is no case that respondents did not pay duty on the inputs. The Commissioner(Appeals) has rightly arrived at the conclusion that if passing on the credit by the dealer was irregular, it is the dealer who has to be proceeded against and not the respondent since the respondent has availed credit on the invoices which have been issued by the dealer. 7. From the foregoing discussions, I do not find any ground to interfere with the conclusions arrived by the Commissioner(Appeals). The impugned order does not call for any interference. Appeal is dismissed. ( Order pronounced and dictated in open cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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