9911796707
TMI Blog2017 (9) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... it was also found that one invoice issued by M/s. Ganpati Enterprises vehicle number was not mentioned. Further, certain inputs were received from registered dealers showing the inputs like MS Plate, iron and steel plates, MS Low carbon diff. sheet / coils, galvanized T L rejected Tower material used in machinery, forklift old and used, MS Pipes, Steel and MS with cement attached are not the inputs for manufacturing of final product. In these allegations, duty was demanded on shortage of raw material and finished goods and Cenvat Credit sought to be denied on the invoice which does not bear the vehicle number and on the premises that inputs in question are not inputs for manufacturing of final products by the appellant. The show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudication that the goods mentioned in the invoices have duly/physically received in the factory of the appellants, the adjudicating authority has allowed the cenvat credit. I find that there is no force in the contention of the learned Consultant that when there is no demand of duty, therefore, the penalty is not imposable. Moreover, the provision of Rule 15(1) of Cenvat Credit Rules, 2004 provides that if there is any contravention of rules then the goods liable for confiscation and the assessee is liable to be penalized. Admittedly in this case, the goods were not held liable for confiscation. When the goods are held liable for confiscation then also the penalty is also not imposable in this case. The case laws cited by the learned DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, Cenvat Credit cannot be denied to the appellant. In these terms, I hold that appellant has correctly availed Cenvat Credit on the invoices issued by the registered dealer. C) With regard to the shortage of inputs as well as finished goods, no panchnama was drawn for verification of the finished goods and it is not coming out from the impugned order whether stock verification was done physically or on sample basis. Further, I find that the shortage is negligible in quantity. Therefore, I hold that duty cannot be demanded on the mere shortage of the inputs as well as of finished goods. 5. In these terms impugned order is set aside and appeal is allowed with consequential relief to the appellant. [Dictated and Pronounced in the op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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