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2017 (3) TMI 1204 - AT - Central ExciseConfiscation of seized WIP (Work in progress) materials found in excess, along with imposition of penalty - Held that: - no physical verification of stock was done during the past 4 years in the appellant’s premises. We also note that the officers recorded shortage of 315 Mts. of scrap. As already noted, in the operation of a kind undertaken by the appellant, the emergence of M.S. scrap is continuous and the identity of an item as a scrap or as M.S. items further usable, has to be considered before arriving at the conclusion of excess in WIP or shortage in scrap - The whole exercise of the Revenue is based on the arithmetical calculation and stock taking undertaken in the premises of the appellant. No consideration was given to the nature of industry and actual process of manufacture, accounting and clearance of various items by the appellant. To sustain demand of duty on the basis of alleged clandestine removal or to deny credit on shortage of items, the evidences available in this case are not sufficient or reasonable - demand withheld. CENVAT credit - construction service in connection with building of rest facility for labour within the factory - denial on the ground of nexus - Held that: - The expenses are part of the appellant’s business activities and in similar situation, the credits on such input service have been allowed by the Tribunal - credit allowed. Clearance to other units - MS Plates - Held that: - the same was confirmed on a general statement of the officials of the appellant without any further verification or corroboration. We find in the absence of any corroboration for such clearance and considering the work sheet contains reference to 13 Kg. and 15 Kg., we find no legal basis to sustain that demand. Appeal disposed off - decided in favor of assessee.
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