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TMI Blog2018 (12) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... per form 3CD filed with income tax return - Held that:- On perusal of the closing stock as per the stock accounts available in their 3CD returns, the figure shown as 84009 Kg. Therefore, there was a shortage of raw-material to the extent of 36,482 - demand upheld. Non receipt of material sent for job work beyond the time limit of 180 days - Held that:- The learned counsel for the appellant submitted that input sent for processing to job work in some cases were returned back beyond the period of 180 days due to unavoidable reasons. He further submitted that they have produced the record of receipt from the job worker after the stipulated period of 180 days but both the authorities have refused to consider that and therefore if the case is remanded back for examination of this aspect - matter on remand. Ineligible cenvat credit availed on crucibles sent to job worker - Held that:- The appellant could not justify from the record that the crucibles were used in the process of manufacture and it becomes waste because no records were maintained. Further the assessee has accepted the non receipt of crucibles sent for job worker for melting aluminium and zinc and therefore the duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit, the Departmental officer visited the premises and verified the record and found the following discrepancies: (i) Stock of raw-material as on 24.08.2007: There was a shortage of 13,948 kgs of raw material stock as on 24.08.2007, on which cenvat credit was availed. The total cenvat credit on the above shortage of raw-material was worked at ₹ 2,98,758/- (Rupees Two Lakhs Ninety Eight Thousand Seven Hundred and Fifty Eight only). On being pointed out, the appellant voluntarily paid an amount of ₹ 2,98,758/- (Rupees Two Lakhs Ninety Eight Thousand Seven Hundred and Fifty Eight only) vide entry in their cenvat account on 25.08.2007. (Contravened the provisions of Rule 9(5) of Cenvat Credit Rules, 2004) (ii) Stock of raw-material as on 31.03.2007: After computing the purchases and sales as per the stock statement the closing balance of stock as on 31.03.2007 worked out 1,20,491 kgs and as per the stock accounts it was shown as 84,009 kgs. Therefore there was a shortage of 36,482 kgs of raw-material stock as on 31.03.2007. The total cenvat credit so availed on the said shortage of stock worked out to ₹ 6,21,166/- (Rupees Six Lakhs Twenty One Thousand One Hundr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndred and Ninety Five only) on the ground that the appellant has not given any satisfactory explanation for not maintaining statutory record for the goods manufactured by them and they have suppressed the material facts from the Department and thereby willfully suppressed the material fact with intention to evade duty and imposed equal penalty under Section 11AC. Aggrieved by the said order, appellant filed appeal before the Commissioner who rejected the same. Hence the present appeal. 2. Heard both the parties and perused the records. 3. Learned counsel for the appellant submitted that shortage of stock in the factory is worked out on the basis of physical weight of stock of work in process material as on 24.08.2007 compared with the weight of input as such received. As in process such as die casting, felting, drilling, tapping, machining which results in generation of retrievable as well as non retrievable scrap not considered. He further submitted that handling loss and cumulative loss in accounting not considered. In reply to this the learned AR submitted that there was a shortage of stock of 13,948 Kg and the duty involved on the shortage is 2,98,758/-. He further submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her submitted that they have produced the record of receipt from the job worker after the stipulated period of 180 days but both the authorities have refused to consider that and therefore if the case is remanded back for examination of this aspect they can still produce the record to verify that they have received the material after the stipulated period of 180 days from the job worker. In reply to this the learned AR submitted that at the time of verification they could not produce the sufficient record to justify the receipt of material from the job worker. He further submitted that this can be verified on remand to the original authority. The fourth point is ineligible cenvat credit availed on crucibles sent to job worker and the amount of duty involved is ₹ 97,593/- (Rupees Ninety Seven Thousand Five Hundred and Ninety Three only). In reply to this the learned counsel submitted that crucible is a melting body for metal and in the present case the crucible has been used for melting aluminium and zinc and during the process of taking out melting metal the crucible get broken and the resulting product is waste mud. He further submitted that crucibles used are in the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X
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