TMI Blog2017 (3) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be denied to the appellant - appeal allowed - decided in favor of appellants. - Appeal No. E/334/2009 - Final Order No: 60214 / 2017 - Dated:- 6-2-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Judicial) Ms. Krati Somani, Advocate - for the appellant Sh. H. Singh- for the respondent ORDER Per Ashok Jindal The appellant is in appeal against the impugned order for denial of cenvat credit of inputs. 2. The facts of the case are that the appellant is engaged in the manufacture of two wheelers and availed cenvat credit on inputs and capital goods used in the manufacture of their final product. 3. During the course of the verification of records, the appellant was asked to furnish t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2015 (319) ELT 549 (SC). 5. On the other hand, the Ld. AR opposed the contention to the Ld. Counsel and submits that the appellant is required to maintain records as per Rule 7(4) of the Cenvat Credit Rules, 2004 which the appellant failed to do so. In that circumstances, the Cenvat Credit has rightly denied by the adjudicating authority relying on the decision of Greaves Cotton Ltd. reported in 2008 (225) ELT 198 (Bom). 6. Heard the parties and considered the submissions. 7. We find that there is no allegation against the appellant for diversion of inputs as such. We further find that in some cases inputs were found excess and in some cases inputs were found short i.e. to the small variation of 0.22%/0.23% of the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, the appellants have reversed Modvat Credit. It is also their contention that the shortage in stock detected during physical verification is no positive evidence that the inputs found so short were disposed of in any manner other than in the manufacture of final products. These submissions of the appellant merit acceptance. The very presence of the unaccounted excess input worth more than ₹ 17 Crores establishes that there are errors in the accounts/physical verification. 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 diversi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this dispute, shall be returned to it. 9. Further, we find that the said order has been affirmed by the Hon ble Apex court observed as under: 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 find that the respondent had pointed out that this was due to accounting errors and there was no shortage in fact because of the reason that in respect of many inputs even stocks in exces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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