9911796707
TMI Blog2018 (12) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue. 2. As per facts on record, the appellant is engaged in the manufacture of car accessories falling under chapter 87 of the first schedule to the Central Excise Tariff Act, 1985 and were availing the benefit of Cenvat credit of duty paid on the inputs, capital goods and input services under Cenvat Credit Rules, 2004. 3. During the audit conducted for the financial year 2006-07 and 2007-08, the scrutiny of their balance sheets revealed that the ratio of inputs used and finished goods manufactured had wide variations during the two financial years. It was observed that during the period 2006-07 the appellant availed Cenvat credit on the inputs amounting to Rs. 03.00 Crores (approx.) whereas during the period 2007-08 the credit av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow cause notice proposing denial of Cenvat credit to the tune of Rs. 81,31,218/-. This amount also included the Cenvat credit of Rs. 1,59,541/- involved on the sales rejection of their final product. It was alleged that the appellant was not maintaining any records of re-manufacture or sale of such rejected returns, as scraps, received by them during the period 2006-07 to 2010-11, the same were not put to any use and were cleared clandestinely from the factory. The said demand was raised by invoking the longer period of limitation. 6. The show cause notice culminated into the impugned orders passed by the original adjudicating authority confirming the demands to the tune of Rs. 79,71,677/- along with confirmation of interest and imposition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating authority has observed that huge stock of inputs not used for the intended purpose of manufactured final product on which duty was discharged are required to reverse the Cenvat credit cannot be appreciated inasmuch as the said loss of the inputs occurred during the course of manufacture of their final product, after the same were issued for production. After the issuance of the inputs, an assessee is entitled to the credit even if such inputs gets converted into waste and scrap during the manufacturing line. As such we find that in the absence of any evidence to the contrary that the appellant cleared their inputs "as such" after availing the Cenvat credit of duty and in fact in the absence of any allegation to that effect, we find no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
