Full Judgment
1. None for the respondents inspite of issuance of notice for today's hearing. Even on the last date of hearing, none appeared on their behalf and the appeal was adjourned for today. No request for adjournment has also been received from them. Therefore, I proceed to decide the appeal after hearing the learned JDR.2. The issue in this appeal which has been filed by the Revenue against the impugned order-in-appeal passed by the Commissioner (Appeals) relates to the availability of Modvat credit of Rs. 30,176/- to the respondents. The facts are not much in dispute. The respondents purchased the materials (MS waste and scrap) through 3 invoices from M/s. Lalit Steel Corporation. The credit had been sought to be denied to them by the Department on the ground that National Re-rollers and Fabricators from whom Lalit Steel Corporation purchased the goods, was not entitled to avail deemed credit towards the payment of duty on the goods. But there is nothing on the record to suggest that if the said firm had been proceeded against by the Department. The respondents had purchased the goods on the basis of duly paid documents. The duty paid nature of the goods received by them and utilisation of the same in the factory, had not been disputed by the Department. They cannot be penalised for the reason that the original supplier wrongly availed the deemed credit, especially when the Department has not so far taken out any proceedings on that ground against them. The Commissioner (Appeals), in my view, has rightly allowed credit to the respondents.
The impugned order is, therefore, upheld. The appeal of the Revenue is dismissed.