2013 (7) TMI 634

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hotra, Advocate For the Respondent: Shri R.K. Verma, AR JUDGEMENT Per Archana Wadhwa (for the Bench): As per facts on record, appellant is engaged in the manufacture of various chemicals and were availing the benefit of Cenvat credit in respect of various inputs. Their factory was visited by the Central Excise officers on 15.3.08, who conducted various checks and verifications. As a result s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed by way of issuance of show cause notice dated 23.2.07 proposing denial of Cenvat credit of Rs.2,47,397/- availed in respect of sodium antimonite and of Rs.1,47,702/- in respect of shortages found in the raw materials. The said show cause notice culminated into an order passed by the original adjudicating authority confirming the demand as proposed in the notice and imposing penalty of Rs.3,95,0 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rted the same and sold it to their customers against some pending order. Whatever credit was available by them, stand paid at the time of clearance of sodium antimonite from their factory. Rule 3(5) of Cenvat Credit Rules, 2004 provides that when inputs, on which credit has been taken are removed; as such, from the factory, the manufacturer shall pay an amount equal to the credit availed in respec .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nvat credit. In any case and in any view of the matter, I find that credit availed by the assessee stand reversed by them at the time of clearance of goods from their factory and as such, the entire situation is revenue neutral. Confirmation of the same for the second time is not justified. 6. The second issue relates to the Cenvat credit of Rs.1,47,702/- which is in respect of shortages detecte .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... that such shortage may be on account of short quantity received than the invoice quantity is to be accepted. In any case, the appellants are not agitating the said confirmation of demand and has deposited the same. As such, I am of the view that imposition of penalty on the appellant is not justified. 8. In view of the foregoing discussion, I set aside the confirmation of demand of Rs.2,47,397/- .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X