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TMI Blog2016 (11) TMI 1477X X X X Extracts X X X X X X X X Extracts X X X X ..... t ORDER Per: Shri P. K. Choudhary Heard both sides and perused the appeal records. 2. It has been alleged in the Show Cause Notice that the respondent contravened the provisions of Rule 2 of Cenvat Credit Rules, 2002 as they have wrongly availed Cenvat credit on 705.73 MT of Neptha, (Petro grade) on inputs, which was found short in stock for the period from April, 2003 to March, 2004 and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the impugned material. Such insignificant shortage of Naptha, a petroleum product, over a period of 12 calendar months is normal loss/ difference for which no cenvat credit is required to be reversed. The following judgments of different tribunals speak in favour of the said assessee." 4. The findings of the Commissioner (Appeals) one as under:- "I have carefully gone through the records of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unauthorized manner and shortage/ loss is due to inevitable/ natural reason, it can safely be inferred that the input was meant to be used only for manufacture of final product. As the input was 'intended for use' in the manufacture of final product, the respondent cannot be deprived of the benefits extended through statutory provisions and judiciary pronouncements." 5. The Ld. AR on behalf of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of raw materials is a process in or in relation to manufacture, the entire credit of duty on transit loss is admissible. In the case of BPL Display Devices Ltd. Vs. CCE. Ghajiabad [2004 (174) ELT 5 (S.C)], the Hon'ble Supreme Court observed that shortage /leakage /damage of inputs in transit, the exemption benefit cannot be denied as the inputs were intended for are in the manufacture of final p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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