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2016 (2) TMI 945 - AT - Central ExciseShortage in stock of finished goods - MS Ingots - clandestine removal - Held that: - I hold that in the facts and circumstances and the valuation method adopted by the inspection team, there is bound to be variation of the stocks value determined with the book records. Further the contention of the appellant that they record production on estimated weight basis and actual weighment of the ingots is done only at the time of removal, have not been found to be untrue. In the case of MS Ingots, the variation in the physical quantity of MS Ingots and book records is about 15% and in the case of sponge iron, is about 11%. Such variation is considered to be normal in the facts and circumstances. Accordingly I hold that no case of clandestine removal of finished goods and raw material is made out. CENVAT credit - Held that: - it is evident from the statement recorded on the date of inspection that there is no element of mala fide in taking of credit. Accordingly no penalty is imposable for the same. Levy of interest - Held that: - following the ruling of Hon’ble Karnataka High Court in the case of CCE, Bangalore v. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT], I hold that interest is not payable on the amount of credit so, reversed which was not utilized before reversal. Accordingly I remand to the Adjudicating Authority on this. If it is found that the appellant have utilized any part of Cenvat credit, during the period the credit was lying available, interest for such user will be payable. Appeal disposed off - decided partly in favor of appellant.
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