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2018 (11) TMI 1206 - CESTAT AHMEDABADClandestine removal - Transfer of inputs (imported goods) without reversing SAD Credit - shortage of raw materials/ packaging material - revenue neutrality - Held that:- The inputs were removed from appellants one unit to their own another unit and the recipient unit is entitled for the Cenvat Credit, in this fact the entire exercise is Revenue/appellant neutral. Their cannot be any malafide intention to remove the input without reversing the SAD as there is neither any gain nor loss to the Revenue in reversing the credit - being the case clearly of Revenue neutral the demand is not sustainable. Shortage of raw material and packing material - demand is mainly based on the statement of Sh. Sameer Parekh dated 05.02.2010 - Held that:- Though in the statement Sh. Sameer Parekh admitted the shortage however he immediately after five days by affidavit retracted his statement dated 05.02.2010. He explained the reason of shortage - The statements recorded of some transporter do not reveal the actual co-relation of alleged clandestine removal - also, there is force in the submission of the appellant that the shortage is only minimum to the extent of 0.5% whereas in the type of industry of appellant the difference of 3% to 5% of shortage is possible - demand cannot sustain. Appeal allowed - decided in favor of appellant.
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