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M/s Tata Motors Ltd. Versus Commissioner of Central Excise, Pune-I

2016 (6) TMI 568 - CESTAT MUMBAI

Clandestine clearance of receipt of raw materials - Held that:- There is no allegation of any mischief in the shape of clandestine clearance of receipt of raw materials. As find that the case of the appellant is squarely covered by the decision of the Hon'ble Supreme Court in case of Maruti Udyog (2015 (8) TMI 493 - SUPREME COURT ). The only difference is that in case of Maruti Suzuki, value of excess found was greater than the value of shortages, whereas in the instant case the value of shortag .....

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, as an additional argument, the Hon'ble Supreme Court has observed that the fact that shortages of input was less than the excess of input found demonstrate the bona fide. - In view of the above, find that the issue is squarely covered by the decision of the Hon'ble Supreme Court in case of Maruti Suzuki India Ltd. (supra). The impugned order is set aside and appeal is accordingly allowed. - Appeal No. E/1446/11 - A/87075/16/SMB - Dated:- 13-4-2016 - SHRI RAJU, MEMBER (TECHNICAL) For the Pe .....

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show-cause notices were issued seeking the reversal of credit of duty taken thereon. The demand show-cause notices were confirmed by both the lower authorities. Aggrieved by the order of the Commissioner (Appeals), the appellants are before the Tribunal. 2. Learned Counsel for the appellant pointed out all the details procedure of accounting as was reproduced in para 3 of the Order-in-Original, which reads as under: - (i) that they take CENVAT Credit on the Cenvatable motor vehicle parts, compo .....

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ight Hand parts at the time of dispatch. He argued that the shortage were of minuscule amount ranging from 0.01% to 0.21%. Similarly, there were excess in 0.01% to 0.08%. He argued that in large operations involved huge no. of parts, such variances are commercially inadvertable dispute elaborate system of account manufactured by them. He argued that there case is covered by the decision of the Tribunal in the case of Maruti Udyog Ltd. - 2004 (173) ELT 382 (Tri-Del), which was upheld by the Hon&# .....

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d of accounting. There is no allegation of any mischief in the shape of clandestine clearance of receipt of raw materials. The Tribunal in case of Maruti Udyog has observed as follows: - 7. The appellants have a huge and complex accounting? problem. It is beyond manual tally. The appellants have put in place sophisticated computer based accounting systems to ensure accuracy and efficiency. The evidence on record does not indicate any diversion of inputs in contravention of rules relating to util .....

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ent as well as its auditor have accepted the differences between the physical stocks and the procurement as normal and something to be put up with. It is a very small (0.24%) fraction of the inputs received. It is well settled that Tax Authorities also should go by the normal commercial and professional practice. If the shortages are within the tolerance limits fixed by an efficient Management and certified to as within the norms by qualified accounting professionals, it would be unreasonable an .....

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preme Court while confirmed the decision of the Tribunal has observed as follows: - We find from the reading of the impugned order of the Tribunal that the Tribunal has discussed in detail the accounting system of the respondent. The magnitude of the inputs used and the discrepancy which arose because of the various factors, on that basis it is stated that when the shortage of inputs as corrected is only 0.24%, that would be immaterial and correction of the total input is in use. In addition we .....

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