Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 164 - AT - Central ExciseShortage of goods - Wrongful availment of CENVAT Credit - supply of finished excisable goods to 100% EOU under CT-3 certification and export of excisable goods under Letter of Undertaking/under claim of rebate - shortage of stock and finished goods - processing/handling loss - Discrepancy of stock as per form 3CD filed with income tax return - non receipt of material sent for job work beyond the time limit of 180 days - ineligible cenvat credit availed on crucibles sent to job worker - shortage of raw-material observed after verification at job workers premises - penalty under Section 11AC. Shortage of stock and finished goods - Held that:- The original authority has found that assessee has not given any satisfactory explanation for having not maintained the statutory record for the goods manufactured by them and further the shortage has not been denied except for processing and handling loss - there is no force in the contention of the appellant as far as shortage of cenvatable inputs and finished goods as on 24.08.2007 is concerned - demand upheld. Discrepancy of stock as per form 3CD filed with income tax return - Held that:- On perusal of the closing stock as per the stock accounts available in their 3CD returns, the figure shown as 84009 Kg. Therefore, there was a shortage of raw-material to the extent of 36,482 - demand upheld. Non receipt of material sent for job work beyond the time limit of 180 days - Held that:- The learned counsel for the appellant submitted that input sent for processing to job work in some cases were returned back beyond the period of 180 days due to unavoidable reasons. He further submitted that they have produced the record of receipt from the job worker after the stipulated period of 180 days but both the authorities have refused to consider that and therefore if the case is remanded back for examination of this aspect - matter on remand. Ineligible cenvat credit availed on crucibles sent to job worker - Held that:- The appellant could not justify from the record that the crucibles were used in the process of manufacture and it becomes waste because no records were maintained. Further the assessee has accepted the non receipt of crucibles sent for job worker for melting aluminium and zinc and therefore the duty liability on this count is also rightly confirmed - demand upheld. Shortage of raw-material observed after verification at job workers premises - Held that:- The original authority has found that cenvatable inputs sent for job work was not properly accounted for and verification of accounts conducted showed shortage of material sent for job work at job worker’s end. Further the original authority has recorded that Mr. Vijaya Kumar, Operations Director of M/s. Dolphin Die Cast Pvt. Ltd. in his statement dated 25.08.2007 given before the Superintendent of Central Excise has accepted that they should have paid the appropriate duty in respect of this violation - demand upheld. Penalty under Section 11AC - Held that:- It is not a case of suppression of material facts with intent to evade payment of duty - imposition of penalty not warranted. Appeal allowed in part as regards penalty is set aside - other demands upheld and part matter on remand as far as verification of raw-materials received from the job worker within 180 days or beyond 180 days is concerned.
|