Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (7) TMI 623 - CESTAT, NEW DELHICenvat Credit- shortage of inputs- the respondents are engaged in the manufacture of Colour Monitor. On 7-2-2003, the Central Excise Officers visited the respondent’s factory and conducted stock verification. The said officers detected shortage of 298 pieces of 15” CRT duty paid inputs involving Cenvat credit of Rs.70,328/-. The representative of the respondents explained that the said goods were damaged during the manufacturing process. The Original Authority confirmed the demand of duty and appropriated the amount as deposited by them. He also imposed penalty of equal amount under Section 11AC of Central Excise Act, 1944. The Commissioner (Appeals) set aside the adjudication order. Hence, the Revenue filed this appeal. Held that- the Original Authority had not disputed that the inputs got damaged during the manufacturing process. Thus, it is evident that the inputs were used in or in relation to manufacture of the final product, within the factory of production. The inputs on which credit has been availed are used for final product destroyed during process of manufacture, would cover in or in relation to manufacture of final product”, there is no requirement of reversal of credit on such input. Thus, there is no reason to interfere the order of the Commissioner (Appeals). Accordingly, the appeal filed by the Revenue is rejected.
|