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2014 (12) TMI 1176 - AT - Central ExciseCenvat Credit - Removal of inputs as such on estimation basis - difference between the consumption of aluminium wire rods calculated by the departmental officers based on the approximate mass per K.M. of various types of aluminium alloys standard conductors given in the ISI standard and the consumption of aluminium wire rod as recorded by the appellant company in their central excise records. - Held that:- If the total consumption during the period of dispute is seen, the consumption as per the appellant’s records would be less than the maximum possible consumption as per the ISI standard. Therefore, merely on the basis of the approximate weight of wire in terms of KG per KM for different types of aluminium conductors given in the ISI standard, the allegation of clandestine removal of modvat credit availed aluminium wire rods cannot be made. We are supported in this view by Apex Court judgment in the case of Oudh Sugar Mills [1962 (3) TMI 75 - SUPREME COURT OF INDIA] wherein, Apex Court has held that allegation of duty evasion by clandestine removal based only on the calculation of the raw material fed into the process or on the working of the machinery as noticed during test inspection is not sustainable, when there is no tangible evidence in support of such an allegation. In view of this the impugned order confirming the modvat credit demand of ₹ 91,57,546/- against the appellant company alongwith interest thereon and imposing penalty of equal amount under Section 11AC is not sustainable and the same is set aside. - Decided in favor of assessee.
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