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TMI Blog2017 (8) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing on behalf of the appellant submits that they have purchased the goods from Virat Ispat Ltd. under the cover of valid duty paying invoice. They have made payment of invoice along with duty to the supplier. The cenvat credit was denied only on the ground that on an investigation by the department against Virat Ispat Ltd. it was found that they have not discharged the duty. He submits that as per the Cenvat Credit Rules, the credit is allowed on receipt of input under the cover of valid duty paying document i.e. invoice in the present case. They have taken the reasonable steps provided under Rule 7 as they have paid the entire amount of invoice to the supplier. As regards non-payment of duty by the supplier the appellants had no contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard in the circular dated 15.12.2003 referred by the appellants. The said circular is reproduced below:- Recovery of dues in cases of default in monthly payment of duty Instructions Circular No. 766/82/2003-CX., dated 15-12-2003 F. No. 201/45/2003-CX.6 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Default in monthly payment of duty - Action to recover the dues - Regarding. I am directed to state that instances have come to the notice of the Board that even after the completion of one month period from the due date where the amount of duty outstanding and the interest payable thereon are not paid within the due date, immediate necessary action as per law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Act, 1944 for recovery of the duty assessed under Rule 6 and interest payable thereon. 4. Such amounts are required to be accounted for and reported as realizable arrears of revenue in the relevant statement. As action under Section 11 can be taken without issuance of Show Cause Notice, prompt action should be taken to recover the arrears. 5. On the issue of availment of credit by the user-manufacturer, it is clarified that action against the consignee to reverse/recover the CENVAT Credit availed of in such cases need not be resorted to as long as the bona fide nature of the consignee's transaction is not in dispute. 6. In case the manufacturer-supplier has received payment from the buyer (including the amount show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period 23-5-2001 to 29-11-2001. 3. At the time of clearance of the said goods the inputs manufacturer i.e. M/s. Viraat Ispat Limited were discharging duty on fortnightly basis under Rule 8 of Central Excise Rules, 2001 by showing the Central Excise duty as payable on the respective Excise invoices. Since the goods were received along with the Central Excise invoices reflecting the Central Excise duty amount payable, the appellants had availed credit on the said duty shown in the respective invoices. Later, it was noticed by the jurisdictional Central Excise Commissionerate of the input manufacturer M/s. Viraat Ispat limited, that they had defaulted in paying fortnightly duty. Consequently, the appellants were issued a notice to reverse the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoices would be paid in the respective fortnight, the appellant had availed the Cenvat Credit. The appellants had paid the excise duty amount shown in the excise invoice to M/s. Viraat Ispat Limited as is evident from the ledger account of M/s. Viraat Ispat Limited and the Bank statement for the relevant period. The Order-in-Original also found the bona fide on the part of appellant. In the above clause 5 of Board Circular can be safely applied. Therefore, in view of the aforesaid settled judgments of Tribunal and the CBEC Circular, the Cenvat Credit was rightly availed by the appellant on the input invoice of M/s. Viraat Ispat Limited and the appellant cannot be directed to reverse the said credit as held by the adjudicating authority an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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