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TMI Blog2017 (3) TMI 1445X X X X Extracts X X X X X X X X Extracts X X X X ..... pital goods used in the manufacture of their final product. 3. During the course of the verification of records, the respondent was asked to furnish the inputs stock variation report. The respondent submitted the report which shows that the difference between the stock of inputs as reflected in the records and the physical stock of inputs lying in the factory of the respondent. The department is of the view that the inputs found short were not used in or relation to the manufacturer of final products, therefore, the cenvat credit of the duty paid on these goods is not admissible to the respondent. In these set of facts, the proceedings were initiated against the respondent and it was held that the respondent is not entitled to avail cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e found short i.e. to the small variation of 0.05% of the total inputs received. 8. I find that the similar issue came up before this Tribunal in the case of Maruti Udyog Limited (Supra), wherein this Tribunal observed as under: 6. We have perused the records and considered the submissions made by both sides. The recovery of Modvat Credit has been orderd under the impugned order on the basis that the appellant has failed to fully account for the inputs (Rule 57-l). This Rule allows recovery of the credits incorrectly or improperly taken. In the present case, there is no allegation that original credit taken was incorrect or improper. The allegation is that, in view of the shortages noticed, the appellant has failed in showing that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The evidence on record does not indicate any diversion of inputs in contravention of rules relating to utilisation of inputs. The demand is merely based on the shortages detected during physical tallying, that too without taking into accunt the excesses noticed. Since there is no evidence, that the excesses are not the result of clandestine receipt of inputs, the same view is required to be taken in regard to shortages also, that the shortages are not the result of any clandestine or unauthorised utilisation of the inputs. The shortages thrown up also do not account for much. The appellants management as well as its auditor have accepted the differences between the physical stocks and the procurement as normal and something to be put up wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in respect of many inputs even stocks in excess was found. It was demonstrated before the authorities that though the shortage of the inputs was to the tune of Rs. 25.67 crores, at the same time many other inputs were in excess and those figures were to the tune of Rs. 27.59 crores during the same period. This fact alone demonstrates the bona fides of the respondent in claiming the Modvat Credit on the basis of figures disclosed by them in respect of the inputs which were used while manufacturing the motor vehicles. A finding of fact is recorded that there was no clandestine of removal of any inputs. It is therefore, not a case for any interference. 10. I find that there is shortage of minor quantities i.e. 0.05% of the total inputs whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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