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2013 (3) TMI 140 - CESTAT KOLKATACenvat Credit - Shortage of Raw material - method of measurement - dip method - inputs, like, Imported Feed Stock, Carbon Black Stock, CBFS-HPL, LDO, Tar Oil and Coal Tar. - held that:- As per the Cenvat Credit Rules, 2004, an assessee is entitled to take credit on inputs which has gone in the manufacturing of final product. Admittedly, when these inputs have been found short and the said shortage has not gone in the manufacturing of final product, therefore, the appellants are required to reverse the Cenvat credit on those shortages after adjusting the excess quantity during the course of stock taking by way of dip method. As held by the Hon’ble High Court of Bombay in the case of Greaves Cotton Ltd. (2007 (8) TMI 254 - HIGH COURT BOMBAY), the Hon’ble High Court held that, neither extended period is invocable nor penalties are imposable in these circumstances. Therefore, we also hold that the demand within a period of limitation is sustainable and no penalty is leviable in this case. Matter remanded back for limited purpose of quantification of duty on the net quantity and net amount written off of within normal period of limitation.
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