2018 (1) TMI 1261

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..... ls are being disposed of by a common order as they emanate from the same set of facts and circumstances. 2. After hearing both sides, I find that the appellants are engaged in the manufacture of Motor Vehicle Parts. During the course of internal audit, they had shown certain amounts as "discrepancy noticed on physical verification of inventories" and the same were reflected in their annual report .....

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..... ng the same and as such they were accounted in kilograms based on the average weight of the parts. When the stock taking takes place on weight basis, there were possibilities for the deficiencies. As such, shortages are on account of accountal procedure and do not represent any actual shortages. The same were not on account of any illicit removal of the goods so as to deny the credit. They also su .....

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..... 49 (S.C.) laying down that the small shortages cannot result in denial of the credit or confirmation of demand. The shortages in the appeal before the Hon'ble Supreme Court were to the extent of only 0.24% whereas the value of the inputs found short was to the tune of Rs. 25.67 Crores. Ld. Advocate also places reliance on a recent decision of the Tribunal in the case of Harita Seathing Systems Ltd .....

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