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2009 (11) TMI 307 - CESTAT, CHENNAICenvat/Modvat- Shortage of raw material- the appellants purchase Cypermethrin from their suppliers on payment of duty and they take credit in respect of the same. However, while recording the receipt the appellants converted the quantity to equivalent quantity of 100% purity on the basis of which the payments are made to the suppliers. However, the duty paid on the higher amounts as indicated in the invoice is not varied nor is them any such finding in the impugned orders passed by the authorities below. The appellants have been denied the credit in respect of the quantity recorded short leading to the present proceedings of duty demand and imposition of penalty. Held that- we are of the view that there is no actual shortage of the impugned raw material and hence there is no need to vary the credit taken by the appellants. The duty and penalty confirmed against the appellants in the impugned order are set aside. The appeal is allowed.
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