9911796707
TMI Blog2013 (3) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, the appellants are required to reverse the Cenvat credit on those shortages after adjusting the excess quantity during the course of stock taking by way of dip method. As held by the Hon’ble High Court of Bombay in the case of Greaves Cotton Ltd. (2007 (8) TMI 254 - HIGH COURT BOMBAY), the Hon’ble High Court held that, neither extended period is invocable nor penalties are imposable in these circumstances. Therefore, we also hold that the demand within a period of limitation is sustainable and no penalty is leviable in this case. Matter remanded back for limited purpose of quantification of duty on the net quantity and net amount written off of within normal period of limitation. X X X X Extracts X X X X X X X X Extracts X X X X ..... w-cause notice was issued for demanding the differential duty for the period April, 1999 to October, 2003. 3 show-cause notices were issued on 23-2-2002, 5-6-2003 & 30-1-2004. The adjudicating authority confirmed the demand along with interest and penalty against the said adjudication. The appellants are in appeal. 3. Dr. Samir Chakraborty, ld. Advocate for the appellants appeared and submitted that in the course of manufacturing activity, the appellants are having a flow meter at the entry point of the inputs and measurements were taken at the entry point through flow meter and credit is taken on the basis of the measurement of flow meter confirming duty paid on inputs. From the flow meter, the inputs are kept in the storage tank and on m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacturing of their final product. As per Cenvat Credit Rules, an assessee is entitled to take credit on the inputs which has gone in the manufacturing of final product as the same has been written off, therefore, the said shortages of inputs have not gone in the manufacturing of final product, therefore, they are not entitled the credit of inputs on these shortages. He also relies on the decision of the Hon'ble Bombay High Court in the case of Commissioner of Central Excise & Customs, Aurangabad v. Greaves Cotton Ltd. reported in 2008 (225) E.L.T. 198 (Bom.). 5. Heard both sides. 6. We have carefully considered the submissions made by both sides. In this case, the fact is that the appellant has written off the quantities of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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