TMI Blog2015 (6) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (2010 (12) TMI 487 - GUJARAT HIGH COURT) 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. - Decided in favour of assessee - E/55804/2013 - Final Order No. A/51997/2015-SM(BR) - Dated:- 18-6-2015 - Shri Ashok Jindal, Member (J) Shri Bipin Garg, Advocate, for the Appellant. Shri R.K. Mishra, AR, for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is not admitted by the Director of the appellant during the course of investigation and that shortage is due to clearance of storage of stock of goods what they have manufactured clandestinely. Although they have paid the duty on pointing out by the department, it does not mean that they have admitted the shortage. In these circumstances, without any cogent evidence of clandestine clearance of the goods, duty cannot be demanded. To support this contention, the appellant relied on the decision of CCE, Daman v. Nissan Thermoware P. Ltd. [2011 (266) E.L.T. 45 (Guj.); CCE, Chandigarh v. H.S. Steels (P) Ltd. [2010 (254) E.L.T. 465 (Tri.-Del.)] which has been affirmed by Hon ble Punjab and Haryana High Court as reported in [2012 (286) E.L.T. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue. Moreover, the learned AR relied on the decision of Hon ble High Court of Allahabad High Court in the case of Sarin v. Sarin (supra) wherein the facts of the case were that during the course of investigation, the shortages of material was found as well as unaccounted cash was also found in the premises of assessee. In these circumstances, when the assessee fails to explain the reason of shortage as well as unaccounted cash, the Hon ble High Court arrived at a decision that shortages are due to the reason of clandestine removal. He also relied on the decision of Bajrang Petrochemicals Ltd. wherein the observation of the Hon ble High Court is that there was huge shortage of finished goods while during taking stock. It is not the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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