Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 1315 - AT - Central ExciseCENVAT Credit - shortages of raw material/finished goods found short at the time of investigation - HELD THAT:- At the time of visit, shortage of finished goods as well as raw material was found. Infact in the case of raw material, shortage is more than 20% and if method of weighment devised by the appellant is taken into consideration then the shortage is 20%. There may be variation from 5% to 10% or like percentage but cannot be such a huge variation in counting the stock on average basis. Therefore, contention of the learned counsel that weighment has been done on average basis is not acceptable. In these circumstances, for the shortage of raw material, appellant is required to reverse the Cenvat credit availed thereof. Finished goods - HELD THAT:- The shortages worked out is less than 9% which may be due to average methods suggested by the appellant during the course of physical verification of the goods of 250 MT and as per Panchnama also, the weighment has been on the basis of average weight of bundle of each size. Therefore, variation may occur due to the weighment done on average basis. Penalty on shortage of raw material - HELD THAT:- The penalty attributable to shortage of raw material is on high side as appellant has paid the duty at the time of investigation itself. Therefore, penalty is reduced to 25% of the duty confirmed on raw material found short. Appeal disposed off.
|