9911796707
TMI Blog2017 (6) TMI 716X X X X Extracts X X X X X X X X Extracts X X X X ..... entory was made by the statutory auditors on 22.3.2003 and compared the same with that recorded in the books of accounts in terms of Accounting Standard-2. Shortages as well as excesses were noticed. Hence show cause notice was issued to the appellant proposing demand of excise duty on indigenous materials as well as customs duty on imported materials, by taking view that these materials were not used for the purpose for which they were imported duty-free i.e. in the manufacture of goods for export. Original authority confirmed excise duty demand amounting to Rs. 11,780/- and customs duty amounting to Rs. 8,52,912/-. Demand of interest as well as penalty equal to the duty demands were also ordered. When the issue was carried to Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional Ltd. - 2013 (292) ELT 573 (Tri.-Del.) (ii) CCE Vs Maruti Suzuki India Ltd. - 2015 (319) ELT 549 (SC) 5. Countering the arguments of the counsel, Ld. D.R submits that inputs have been procured without payment of duty by the appellant. The relevant Customs Notification has a condition which provides that, if the imported goods are not used for the purpose of manufacture of goods for export, the duty demand is liable to be paid by the appellant. In the present case, the goods found short have not been used in the manufacture of export goods. Hence duty demand is sustainable. He also sought to distinguish the case law relied upon by the appellant. He submitted that the finding of the Tribunal in the case of Aarti International (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2.7 lakhs only as against the total consumption of materials during the said year to the tune of Rs. 727 lakhs. This works out to only 0.36% in terms of value of the total materials consumed. In the absence of any evidence on record, it is farfetched to come to the conclusion that shortage quantity has been cleared without payment of duty and without use in the manufacture of final product. 7. We have perused the case laws relied upon by the appellant. The decision of the Apex Court in the case of Maruti Suzuki (supra) is on similar facts. The issue in that case was with reference to reversal of cenvat credit on shortages of inputs. The shortage worked out to only about 2.4% of the total value of inputs to the extent of about Rs. 25 cro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
