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2014 (3) TMI 202 - AT - Central ExciseShortage in the stock of Cenvat credit availed of raw materials - physical verification of stock - clandestine clearance - Held that:- In case of Cenvat credit availed inputs, if there is huge unexplained shortage, vis-`-vis the balance recorded in RG-23A register, the same can be either due to clandestine removal of cenvated inputs without payment of duty or due to fraudulent availment of Cenvat credit on the basis of bogus invoices without actual receipt of the goods covered under those invoices. In both the case the burden of proving that such shortage of finished goods or of cenvated inputs is due to bonafide reasons would shift to the assessee. The respondent while accepting the fact of these shortage have not given any explanation for the same other than stating that the same may be due to improper stock keeping. In my view, the explanation given by the respondent for these shortages is not satisfactory and therefore the same are to be treated as due to clandestine removal of cenvated inputs and accordingly penalty under Rule 15 (2) of Cenvat Credit Rules, 2004, readwith Section 11AC of the Act would be attracted. Levy of penalty u/s 11AC confirmed - penalty under Section 11AC would be 25% of the duty demand if the same is deposited by them within a period of 30 days from the date of receipt of this order. - Decided in favor of revenue.
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