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2013 (9) TMI 210 - CESTAT NEW DELHIShortage of Inputs - CENVAT credit - The appellants were engaged in the manufacture of parts and components of various engineering goods falling under Chapter 85 of the First Schedule to the Central Excise Tariff Act, 1985 - Held that:- The Revenue's case was without any substance and made by its own mistakes of numerous types and without an effort to understand the issues involved - this was a case made without the minimum diligence required, sending such matter for de-novo consideration will be another round of harassment for the appellants and most likely another round for wasting the time of the Tribunal also in a further litigation in second round - the similar notice issued to Unit-II of the Appellant in the same jurisdiction had been dropped The situation could be on account of clandestine removal of inputs on which Cenvat credit was taken - The situation could also arise due to bogus credits on the basis of documents without receiving goods covered by such invoices. It could also be due to clandestine manufacture of final products using the impugned inputs and clearing such final products without payment duty - But revenue had not found any evidence of instances of any such activity - The Show Cause Notice mentioned only the first type of possibility and not the second and third type of possibilities. On the whole the entire calculation gives the impression of a very raw method was adopted by interpreting figures in the balance sheet and account books of appellants without taking the help of the appellants or an accounting professional, muddling through making even totaling mistakes on the way. This type of case made by Revenue deserves to be dropped without further examination. The whole case was made in a very casual manner - During stock taking or immediately thereafter the Revenue did not discuss with the appellants what their doubts were and seek clarification from the appellants - Thereafter they issued Show Cause Notice making a case of shortage of inputs based on the stock statements given by the appellants to the banks - Order set aside – Decided in favour of Assessee.
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