TMI Blog2007 (3) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... i C. Venkatesh, the learned Consultant who appeared for the appellants, urged the following points :- (i) A demand of Rs. 9,917/- has been made on the ground that credit has been availed on the quantities short received by the appellants. (Annexure 'A' to Show Cause Notice). It was submitted that this amount had already been reversed on 26-12-2002. (ii) In respect of amounts mentioned in Annexure 'B' , 'B-1 and 'B-2', it was alleged that full Cenvat credit had been taken in respect of inputs short received as found at the time of stock taking on 31-12-2000, 2001 and 2002 respectively. It was submitted that in respect of Annexure-B, actually there was no short receipt as alleged. In respect of Annexure 'B-1/B-2', it was submitted that du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that when the inputs are cleared as such, duty ought to have been paid at the rate applicable to such goods on the date of removal on the value determined under Section 4. Department' s contention is not correct in the light of Board's Circular No. 643/34/2002-CX., dated 1-7-2002 and the following three decisions : (a) Ispat Metallics Industries Ltd. v. CCE, Raigad - 2006 (194) E.L.T. 417 (Tri.-Mumbai) (b) CCE, Vadodara v. Asia Brown Boveri Ltd. - 2000 (120) E.L.T. 228 (Tribunal-LB) (c) CCE, Coimbatore v. American Auto Service - 1996 (81) E.L.T. 71 (Tribunal) (v) In respect of Annexure 'E', an amount of Rs. 10,20,835/- relates to the credit on rejected inputs lying in stock. According to the department, these inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collusion or suppression with an intent to evade payment of duty. Therefore, penalties and demand of interest are also not sustainable. 3. The learned JDR reiterated the impugned order. 4. We have gone through the records of the case carefully. The demand in respect of the Cenvat credit alleged to have been irregularly availed is as per the 7 Annexures to the Show Cause Notice. According to the Revenue, the irregularity is on account of the following reasons :- (i) In respect of certain cases, the goods shown in the invoice have not been fully received. (ii) The appellants took credit on the short received quantities also. (iii) The appellants had taken credit in respect of inputs which were written off. (iv) When the input ..... X X X X Extracts X X X X X X X X Extracts X X X X
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