9911796707
TMI Blog2015 (6) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... rification physical stock was found to be 4,86,000 Kgs. A statement of Director of the appellant was recorded who admitted the shortages but when asked for reason for shortages, he explained that appellant has not taken the stock position for a long time. Thereafter the appellant paid the duty on shortages. A show cause notice was issued to the appellant for appropriation of the said amount and for imposition of penalty under the provisions of Central Excise law. Matter was adjudicated. Demand of duty along with interest was confirmed. Penalty was also imposed. On appeal, learned Commissioner (Appeals) confirmed the order of adjudication. Aggrieved from the said order, appellants is before me. 3. Shri Bipin Garg, learned advocate for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andestinely removed the goods/inputs. He relied on the decision of Hon'ble High Court of Allahabad in the case of Sarin and Sarin {[2015] 54 taxmann.com 147 (Allahabad)} to support his contention. He also relied on the decision of Bajrang Petro Chemicals (P) Ltd. v. CCE, Kanpur [2014-TIOL-2254-HC-ALL-CXI = 2015 (317) E.L.T. 243 (All.)]. 5. Heard the parties. Considered the submissions. 6. In this case, it is admitted fact that during the course of verification of stock of inputs, there was shortages and have been explained by the Director that these shortages were due to the reason that they have not taken their stock position since long. It is also a fact that process of manufacturing of appellant is like that where HDPE granul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n admitted by the Director, is not sufficient evidence to allege clandestine removal of the inputs. In this case, inputs were found short but same has been explained by the Director that as they have not taken the stock position since long, that might be the reason of shortage. These facts have not been appreciated by the lower authorities. In these circumstances, I rely on the decision of Nissan Thermoware P. Ltd. (supra) that held that in the absence of any cogent evidence of removal of inputs clandestinely, the cenvat credit cannot be denied on shortage of inputs to the appellants. With these terms, the impugned order is set aside. Appeal is allowed with consequential relief, if any.
(Dictated and pronounced in the open court) X X X X Extracts X X X X X X X X Extracts X X X X
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