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2010 (8) TMI 560 - AT - Central ExciseCenvat credit - Shortages of raw materials - During the search of the factory premises and physical stock verification, certain shortages of raw materials were detected - Said raw material is lying in the factory premises of their sister unit due to shortage of space in their premises on account of rainy season - The Commissioner (Appeals) has observed that once the Cenvat Credit is taken on the raw material, there is no provision in the Cenvat Credit Rules to remove the input from the premises except after debiting of credit so availed. Find that this is not a case of clearance of Modvatable input from the factory premises but it is a case of temporary removal and storage of input in the adjacent factory premises, which is a sister unit of the appellant - The appellate authority has observed that they could have shifted the raw material outside their factory premises by issuing gate pass and reversing the credit and later on taking re-credit as and when they were in a position to bring the raw material back - It becomes clear that this is only a procedural lapse- Such inputs were duly accounted for by the appellant in their statutory record and as such, they were under a legal obligation to show consumption of the same - Conclude that they were removing the goods with mala fide intention, in the absence of any evidence to the contrary, would not be in the interest of justice - Hence, set aside the impugned order and allow the appeal.
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