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TMI Blog2019 (7) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... tment was of the view that the appellant is not eligible for Cenvat Credit attributable to input found short in the stock. Show-cause notices alleging wrong availment of credit on inputs found short at the time of physical verification was issued for the period 2007-08 and from 01.04.2009 to 28.04.2010. It was also noticed that for the period 2007-09, the appellants were availing excess credit by taking credit twice on the same invoices. On being pointed out, the appellant reversed the wrongly availed credit but, however, did not paid the interest. The show-cause notices proposed to demand interest on the wrongly availed credit and for imposing penalties. After due process of law, the original authority confirmed the demand of interest and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NGALORE. 2.1 The second allegation is with respect to excess credit availed by the appellant on two invoices for the period 2007-09. The appellant had availed credit twice on the same invoices due to inadvertent mistake. The credit was reversed immediately on noticing the mistake. She, therefore, prayed that the demand of interest as well as penalties imposed on this count may be set aside. 3. The learned Authorised Representative for the Revenue Shri S. Govindarajan, AC (AR) supported the findings in the impugned order. With regard to shortage in physical stock verification of raw materials, he submitted that it cannot be stated that the shortage is due to the writing off of the raw materials. When there is shortage of raw materials, Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no allegation or finding as to clandestine removal of inputs or finished products. The appellant has explained that the shorage is due to writing off of the raw materials in their books of accounts. The department has not adduced any evidence to the contrary. There is no allegation that goods were removed from the factory. In paras 10, 11 and 12 of the order passed by the original authority, the adjudicating authority has stated that the credit has been wrongly availed, since there is shortage of raw materials. When there is shortage of raw materials by writing off, Rule 3(5B) of Cenvat Credit Rules, 2004 would apply. The said Rule though introduced in 2008, the provision for partial writing off was introduced only in 2011. Thereafter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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