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TMI Blog2007 (9) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... sued by dealer M/s.N.K. Rayon and M/s. Massom Creation - They did not exist in the address given by them. The registration certificates given to them were provisional - documents cannot be held to be valid for the purpose of taking credit – demand of duty and interest is upheld – penalty is set aside X X X X Extracts X X X X X X X X Extracts X X X X ..... o., B/h, Bipin Dyeing Udhna-Magdalla Road, Surat and taken cenvat credit based on these documents. (b) The enquiry conducted by the Department revealed that the weavers/dealers did not exist at the address mentioned in the application for registration. (c) Show cause notice was issued proposing denial of the credit based on the invoices issued by the above mentioned dealers holding them as fake/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paying duty. It was therefore contended that the appellant has taken all reasonable steps in terms of Rule 7(2) as they have procured from weavers/dealers who were registered with the Central Excise Department. 5. Ld. Dr submits that the spirit of Rule 7 envisages that who ever takes credit should take precaution that the person who has passed on the credit has indeed paid the duty at his end. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Excise law and procedure is on them. There are the party who has taken the credit. It is like a buyer of stolen goods cannot claim ownership of the goods even if he has purchased with out the knowledge that they were stolen goods. If he has purchased with the knowledge that they are stolen, then he is liable, in addition, to penal action. 7. In the light of the above, I hold that a) The invoic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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