TMI Blog2017 (3) TMI 1445X X X X Extracts X X X X X X X X Extracts X X X X ..... e tolerance limits fixed by an efficient management and certified to as within the norms by qualified accounting professionals, it would be unreasonable and unfair for tax authorities to take a different view - credit allowed - appeal dismissed - decided against Revenue. - E/162/2012-(SM) - A/60326/2017-SM[BR] - Dated:- 2-3-2017 - Mr. Ashok Jindal, Member (Judicial) Shri Harvinder Singh, AR for the appellant Ms. Krati Somani, Advocate for the respondent ORDER Per Ashok Jindal The Revenue is in appeal against the impugned wherein the cenvat credit was allowed to the assessee on the inputs which were found short during the course of final appraisal of the stock taking of the assessee. 2. The facts of the case a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been used in manufacture of final products. There is no allegation of diversion of inputs by the respondent. Moreover, there were about 12,000 components received by the respondent from 300 vendors and the goods have been used in the factory of the respondent and the shortage is minor i.e. 0.05% in the year 2008-2009. Therefore, on such minor shortage, the cenvat credit cannot be denied to the responded in the light of the decision of this Tribunal in the case of Maruti Udyog Limited Vs. CCE reported in 2004 (173) ELT 382 (Tri. Del.) which has been affirmed by the Hon ble Apex Court reported in 2015 (319) ELT 549 (SC). 6. Heard the parties and considered the submissions. 7. I find that there is no allegation against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t all aspects including pilferage are taken care of. It has been pointed out that wherever the inputs have been disposed of other than in the manufacture of final products, including pilferages detected, 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no demand can be raised under Rule 57-l. The demand is accordingly, set aside and appeal is allowed with consequential relief to the appellant. Amounts already deposited by the appellant, on account of 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 us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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