9911796707
TMI Blog2018 (1) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in manufacture of finished goods, cleared by appellants on duty payment - credit allowed. Reversal of CENVAT credit under protest - CC Billets - Held that: - the Commissioner (Appeals) erred in observing that reversal is without protest. As appellants have not accepted objection of Revenue and have also been contesting the matter in appeal. Thus the reversal of credit ipso facto is not admission - credit on Billets is fully allowed. Levy of duty - removal of scrap - Held that: - cogent explanation was given by the appellants, not found untrue. Thus demands have been confirmed only on presumptions - demand set aside. Inputs found short - MS Angles - Held that: - admittedly there is no calculation sheet annexed to Panchnama, neither any su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Total 1. 205-22.06.11 M/s Sapna Steels, Raipur M.S. Channal 138660 2773 1387 142820 29/446 Dated 26.01.12 2. 883-17.07.11 M/s Sarda Steels Industries Ltd., Kanpur M.S. Angle 76464 1529 765 78758 29/444 Dated 26.01.12 3. 881-17.01.11 M/s Sarda Steels Industries Ltd., Kanpur M.S.Angle 76768 1535 768 79071 29/442 Dated 26.01.12 Total 291892 5837 2920 300649 ii- Cenvat credit ₹ 1,42,839/- was taken on CC Billets. Which appeared to be neither an input nor an output of the appellants, which was received from the sister concern of the appellants, namely M/s Rimjhim Stainless Ltd. the details are as follows: - SI. No. Invoice No. & Date (RUD-3) Name of the Consignee Qty. (MT) Amount of irregular Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Structure Division" was missing. The appellants also have another unit under the same name "M/s Rimjhim Stainless Ltd". which is similar to appellant's M/s Rimjhim Stainless Ltd. (Structure Division). Both the units are located in near vicinity at a distance of about 10Kms. There is no dispute that the materials in question are inputs of the appellants, namely MS Angle, Round/Bars/ Channels and Plates. It is also found that the materials under the invoices were raw material of the appellants. Further no discrepancies were found with regard to the stock of finished goods which was found tallied with the record. Only for clerical error by the supplier of the material, that is, not mention of "Structure Division" the Cenvat credit should not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llets for getting the same converted into Angles/Channels on job work basis which are input required for manufacture of structures. It is also stated that Billets in question were found present in the factory premises on inspection. Only on presumption that Billets are neither raw material nor finished goods, credit have been wrongly disallowed against the scheme of the Act under Rules. It is also stated that the appellant had reversed Cenvat credit soon after of the inspection, and thereafter the Billets were released to them. The Learned Counsel prays that the credit of same is allowable. 8. The Learned Commissioner (Appeals) have upheld the disallowance on the ground that appellants had suo moto reversed the credit, without notice/prote ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n confirmed only on presumptions. Accordingly, I deleted the duty demand of ₹ 26,803/-. Demand of duty of ₹ 1,81,002/- on stock inputs, found short at the time of physical verification. The Learned Counsel states that according to Panchnama, opening balance was 778.814MT and on physical verification, which was done by way of eye estimation of stock, estimated at 730.00MT. Accordingly, it was concluded that MS Angles weighing 48.814MT were short. The Learned Counsel states that the fact of eye estimation is evident from Panchnama. Secondly the variation of about 7% of the stock, such variation is normal in the case of eye estimation. Considering the rival contentions, I find that admittedly there is no calculation sheet annexed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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