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TMI Blog2017 (7) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... e have not found any error in the records of M/s MSSL regarding receipt of the goods from M/s NPIL, the proper account and payment for the same and utilization of the PVC Tapes in the production of wiring harness which have been cleared on payment of duty - Revenue have drawn adverse inference based on some minor variation and or clerical error, in about 8 invoices out of total of 91 invoices, in the disputed period, which is also in respect, only vehicle nos. as mentioned in the invoices and as compared with the manual register of vehicles entering the factory maintained at the gate by the security staff. Such gate register is not by the management of M/s MSSL, and as such no reliance can be placed on the same for drawing adverse inferences - credit allowed - appeal allowed - decided in favor of appellant. - E/966, 967 & 837/2011-EX[SM] - A/A70605-70607-SM[BR] - Dated:- 29-3-2017 - Mr. Anil Choudhary, Member ( Judicial ) Shri Atul Gupta, Advocate for the Appellant Shri D. K. Deb, Assistant Commissioner, (AR), for the Respondent ORDER Per: Anil Choudhary The issue in this appeal is, whether the appellant- M/s Motherson Sumi Systems Ltd., (MSSL, for shor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit the same are taken into the system under the heading 'Gate Entry'. Thereafter GRN (goods receipt note) was generated by store person and an inspection by the Parts Inspecting Inspector was done. Thereafter the inputs are stored in the main store and issue to production on the basis of material issue slips. He has checked the list of invoices issued by M/s NPIL along with the description of goods, value of goods, duty and vehicle nos. through which the said goods were said to have been transported to M/s MSSL and found the same to be true and correct. The vehicle numbers in respect of the mentioned invoices were also entered in the systems. So far the mismatches is concerned with some vehicle nos., were not entered in the vehicle register maintained by the security staff at the gate. The same needs to be verified. 5. Further, statement of Shri Vikas Thakur, Assistant Manager (Quality) was recorded of M/s MSSL, under Section 14 of the Central Excise Act, 1944 who stated that he is In-charge of Quality Assurance Department . He supervises inspection and different quality test of all the inputs, component parts, raw materials. Thereafter, when the purchase department p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Motherson Sumi Systems Ltd., except the one located at A 15, Sector 6, Noida have received goods from M/s NPIL, Delhi. 6. Statement of Mr. Rajat Jain, General Manager (Vendor Department) was also recorded under Section 14 of the Central Excise Act, 1944 wherein he stated that he has been working for more than 7 years for M/s Motherson Sumi Systems Ltd. and his job responsibilities includes supplier evaluation, purchasing, planning and logistics. He further stated that M/s Motherson Sumi Systems Ltd., was buying a large variety of parts. Wherever, specific tooling development was involved/required, the visit to the supplier was taken up most of the time. For minor parts visit to supplier was not usually taken up. They checked the quality on the basis of samples received from the supplier to qualify the supplier and the component. So far supply from M/s NPIL to M/s Motherson Sumi Systems Ltd., is concerned the freight was not paid by them as the terms of delivery were delivery at the unit. 7. Based on the statements of the transporters and with respect to the investigation done by the Revenue at M/s NPIL. It appeared that M/s Motherson Sumi Systems Ltd., had willfully and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of about ₹ 37 lakhs that for some minor discrepancy in the vehicle nos. in the invoices, that is only in 8 out of 91, does not call for adverse inference of non-receipt of inputs. 9. The Show Cause Notice was adjudicated vide OIO dated 31/08/2010. The proposed demand of disallowance of Cenvat credit was confirmed and the same was also appropriated with interest and further equal amount of penalty was imposed on M/s Motherson Sumi Systems Ltd., under rule 12/14 of Cenvat Credit Rules, 2002/2004 read with Rule 25 of Central Excise Rules, 2002 read with Section 11 AC of the Central Excise Act, 1944. Further penalty of ₹ 15 lakhs was imposed on the unit head of M/s Motherson Sumi Systems Ltd., Mr. Rakesh Kumar Sharma further penalty of ₹ 37,26,151.68/- was imposed on the other appellant M/s NPIL. 10. Being aggrieved, these appellants move before ld. Commissioner (Appeals) who vide the impugned OIA been pleased to confirm the disallowance of Cenvat credit with equal amount of penalty on the appellant - M/s Motherson Sumi Systems Ltd. However, he gave an opportunity to deposit penalty of 25% under Section 11AC of the Central Excise Act, 1944. So far penalty on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ape. But total PVC Tape manufactured by M/s NPIL during the period of dispute is 412.149 MT which includes 1.314 MT during 2003-04 + 210.127 MT during 2004-05 + 200.708 MT during 2005 06 in manufacture of which Resin at the rate of 56% could be used, which reveals 768.03 MT of Resin still unaccounted. Thus, this Tribunal have accepted the fact that the other appellant - M/s NPIL did manufacture PVC Tapes during the disputed period in this appeal in substantial quantity. Thus, this also supports the arguments and the case of the appellant - M/s Motherson Sumi Systems Ltd., Unit Head, Mr. Rakesh Kumar Sharma, accordingly prays for allowing the appeal. 12. So far the other appellant M/s N PIL is concerned, they have filed written submissions to the effect that the penalty on them is not tenable under the facts and circumstances, more so, in view of the earlier order of this Tribunal dated 04/07/2011, referred to hereinabove, no case of penalty and clandestine removal of PVC Tapes is made against them and as such the penalty on them is fit to be set aside. 13. The ld. A. R. for Revenue have relied on the impugned orders. He has taken me through the allegations in the Show Cause ..... X X X X Extracts X X X X X X X X Extracts X X X X
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