TMI Blog2019 (7) TMI 1797X X X X Extracts X X X X X X X X Extracts X X X X ..... only in cases where goods are available in the factory and only a book entry has been made to write off the value of the said goods, which is not the allegation of the department against the Appellant. It is not the case that the inputs which were found short were not received or were clandestinely removed. We also cannot lose sight of the fact that there were excesses also in inputs which were brought to the notice of the department but these excesses were ignored by the department. This fact itself establishes the bonafide of the appellants in claiming CENVAT credit on the basis of figures disclosed by them in respect of inputs which were used by them. Although there is a finding that the appellants have suppressed the facts with inten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal are as follows. M/s. Tata Motors Ltd. i.e. the Appellant herein are manufacturers of motor vehicle parts falling under Chapter 87 of CETA, 1985. During scrutiny of their records by audit it revealed that M/s. TVS Logistics Services provide services to the appellant including unpacking of input from bulk packages, repacking of final product into unit containers and maintenance of stock of input/finished goods. The appellant and the service provide carryout stock taking of goods at specific intervals. The excess stock is taken on record whereas shortages are written off as a result there was variance in the inventory of Cenvat Input Credit maintained by the Appellant. Net shortages of inputs were to the tune of ₹ 7,13,49,351/- an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansactions, they have put in place sophisticated computer based accounting system to ensure accuracy and efficient. The entries regarding receipt of inputs are made at receipt point where the consignments are inwarded and after sample checking of quality and invoiced quantity, Goods Inward Note (GIN) is prepared, thereafter the acceptable inputs are stored in the allotted Bins. As per the learned counsel errors can creep in for many reasons like picking up wrong LH/RH parts, despatch of alternate parts, incorrect posting to alternate parts etc. Also there may be errors in noting down various types of parts during physical stock verification, parts not available at the time of stock taking at its specified storage rack but subsequently found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e denied the contention of learned counsel that those parts which were not available during physical stock verification at its specified storage rack were subsequently found in another storage rack. 4. Rule 3(5B) ibid specifically provides that If the value of any input or capital goods before being put to use, on which CENVAT credit has been taken is written of fully or where any provision to write off fully has been made in the books of accounts, then the manufacturer or service provider, as the case may be, shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods. A plain reading of the said rule makes it clear that it is applicable only in cases where goods are available in the factory a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by producing any evidence. Merely making allegations of suppression or intention is not sufficient unless the same is established beyond reasonable doubt. The inputs were undisputedly received in the factory of the appellants and upon receipt they were properly accounted for. In our considered view rule 3(5B) ibid cannot be applied on the facts of this case as the entire case of the department is that the goods are not available in the factor whereas for the application of the said rule the goods have to be available in the factory and only a book entry is to be made to write off the value of the said goods. We are also not oblivious of the fact that on a similar set of facts in appellants own case this Tribunal in the matter of M/s. Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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