TMI Blog2011 (4) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... can be attributed to the appellants so as to invoke the extended period of limitation against them - Appeal is allowed - E/1638 of 2009 - A/700/2011-WZB/AHD - Dated:- 28-4-2011 - Ms. Archana Wadhwa, J. REPRESENTED BY : Shri Alok Barthwal, Advocate, for the Appellant. Shri Rajendra Nagar, SDR, for the Respondent. [Order]. The appellant is engaged in the manufacture of detergent powder and cake falling under Chapter 34 of the first schedule of Central Excise Tariff Act, 1985. During the course of audit of the records of the assessee the Cenvat credit to the duty payment ratio was verified to assess the availment of cenvat credit. On verification it was found that the assessee has been following the batch wise/lot wise pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned in their raw materials and packing materials stock statement from 1-8-2004 to 31-10-2006; that it was informed to the audit party at the time of audit that the figures shown against shortage/damage did not pertain to any shortage/damage, but in fact, it represented process loss. This loss occurred during various stages of manufacture of final products. The assessee also furnished the details for the year 2004-05 to 2006-07, duly signed and verified by the Range Superintendent. 3. In view of the above, proceedings were initiated against the appellants by way of issuance of show cause notice dated 29-5-2008 proposing to confirm demand of duty of Rs. 3,57,106/- by dis-allowing the modvat credit wrongly availed by the appellants from Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some process loss is inevitable and in the absence of any evidence to the contrary, the appellant s contention that the said shortage/damages relates to the process loss has to be accepted. It may be kept in mind that this not a shortage of inputs detected at the time of visit of the officers, in which case, the onus lies upon the assessee to explain such shortages. 7. Apart from the above, I also find that the demand relates to the period from 1-8-2004 to 31-10-2006, whereas the show cause notice was issued on 29-5-2008, invoking the longer period of limitation. When the entries relating to shortage/damage of inputs is being reflected in the records, no mala fide can be attributed to the appellants so as to invoke the extended period of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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