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TMI Blog2017 (3) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... on the shortage in the stock of Inputs is upheld. As far as the credit of ₹ 17,88,402 is concerned, the same has been demanded on the ground that there has been mis-match in the generation of waste; the excess quantity of wastage was shown to have been generated in the manufacture of their own goods with an objective to cover up the excess inputs used in the manufacture of job work goods - the said issue is no more res-integra being covered by the judgments referred by the Ld Advocate in the cases of Sterlite Industries (I) Ltd, [2004 (12) TMI 108 - CESTAT, MUMBAI] - the demand of ₹ 17,88,402/- confirmed by the lower authorities below is liable to set aside. Both the authorities below while confirming the Cenvat Credit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 144.250 kgs in the stock of inputs on which Cenvat Credit availed by the appellant was noticed; no discrepancy was noticed in the stock of finished goods. Thereafter, on completion of investigation a show cause notice was issued to the appellant on 9th April 2008 alleging wrong availment of cenvat Credit of ₹ 17,88,402/- during the period 2003-04 to 2007-08 besides ₹ 3,38,365/- on the shortage of stock of Inputs noticed. On Adjudication, the demand was confirmed alongwith interest and penalty. Aggrieved by the said order, the appellant filed an appeal before the Ld commissioner (Appeals), who in turn rejected the appeal, hence the present appeal. 3. The Ld. Advocate Shri S J Vyas, for the appellant submits that the shortage i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot be directed to reverse the credit on the inputs allegedly used in the processing of job work goods. In support, he referred to the judgment of Larger Bench in the case of Sterlite Industries (I) Ltd 2005(183)ELT.353 (Tri.LB) later approved by the Hon ble Bombay High Court reported as CCE Vs. Sterilite Industries Ltd. 2009 (244) ELT A89(Bom.), Jainsons Wool Combers Ltd 2011(268)ELT.360 (P H), Happy Forging Ltd 2011.TIOL.34.HC.P H .CX, Bharat Fritz Werner Ltd 2007(218)ELT.177 (Kar.). 4. Ld AR for the Revenue reiterated the findings of the Ld Commissioner (Appeals). 5. Heard both sides and perused the records. As far as the shortage in the stock of inputs arrived at is concerned, I find that the representative of the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of wastage and required to be reversed being not used in or in relation to the manufacture of finished goods. In these circumstance, the demand of ₹ 17,88,402/- confirmed by the lower authorities below is liable to set aside. 6. Also, I find that both the authorities below while confirming the Cenvat Credit on shortage of Inputs though imposed equivalent penalty under Rule 15(2) of CCR,2004 read with Sec. 11AC of CEA,1944 but not extended the benefit of discharging 25% of the penalty on fulfilment condition laid down under the relevant provisions, hence the appellant is entitled to he said benefit subject to fulfilment of the conditions, in view of the judgment of Hon ble High Court of Gujarat in case of CCE C vs Swati Chemicals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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