9911796707
TMI Blog2023 (12) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... s' which are volatile in nature, the availment of credit to the extent of 'loss in transit', ascertained from measurement at the factory, is incorrect in terms of rule 3 of CENVAT Credit Rules, 2004. The impugned order [order-in-appeal no. BC/97/BEL/2013-14 dated 30th May 2013] of Commissioner of Central Excise (Appeals), Mumbai - III has upheld the finding of the original authority confirming recovery of Rs. 40,22,712/- for the period from October 2010 to September 2011. It would appear that the lower authorities had adopted the benchmark of 2% as the 'tolerance' and further denied credit wherever the difference was more than 0.4% as established by issue of debit notes. 2. We have heard Learned Counsel for the appellant and Learned Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no. A/767/WZSB/AHD/2007 dated 2nd April 2007] in appeal [. E/3643/2005] against order [order-in-appeal no. VP/312/Vapi/2005 dated 29th July 2005] of Commissioner Central Excise & Customs (Appeals), Vapi and in Savita Oil Technologies Ltd v. Commissioner of Central Excise, Belapur [2022 (6) TMI 1175 -CESTAT MUMBAI] has settled the issue. 4. We find that the issue is no longer res integra and that, in re Savita Oil Technologies Ltd, it was held that '7. Availment of CENVAT credit of duties paid on inputs is enabled by rule 3 of CENVAT Credit Rules, 2004. The credit taken by the appellant is the duty of central excise paid by the supplier as recorded in the invoices and any difference in quantity, manifested in 'goods receipt note (GRN)' o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of duty to such extent and that has not been controverted by Revenue. This is the sole situation that the decisions relied upon envisage for fastening liability in recovery proceedings. 10. The decision in Petronet LNG Ltd makes it abundantly clear that such loss in transit is not includible for computation of 'assessable value'; conversely, inclusion therein implies higher value per unit and consequent absorption of higher liability of tax. 11. Considering the circumstances supra and, in particular, the appellate orders in their own cases of identical recovery for other periods, the liability confirmed by original authority, and upheld in the impugned order, is without authority of law.' as also in several other decisions of simila ..... X X X X Extracts X X X X X X X X Extracts X X X X
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