9911796707
TMI Blog2019 (7) TMI 1797X X X X Extracts X X X X X X X X Extracts X X X X ..... from September, 2010 to March, 2011 alongwith interest and penalties. 2. The relevant facts giving rise to the filing of the instant Appeal are as follows. M/s. Tata Motors Ltd. i.e. the Appellant herein are manufacturers of motor vehicle parts falling under Chapter 87 of CETA, 1985. During scrutiny of their records by audit it revealed that M/s. TVS Logistics Services provide services to the appellant including unpacking of input from bulk packages, repacking of final product into unit containers and maintenance of stock of input/finished goods. The appellant and the service provide carryout stock taking of goods at specific intervals. The excess stock is taken on record whereas shortages are written off as a result there was variance in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue inputs and strike balance of these transactions on daily basis in a register. In order to handle such volume of transactions, they have put in place sophisticated computer based accounting system to ensure accuracy and efficient. The entries regarding receipt of inputs are made at receipt point where the consignments are inwarded and after sample checking of quality and invoiced quantity, Goods Inward Note (GIN) is prepared, thereafter the acceptable inputs are stored in the allotted Bins. As per the learned counsel errors can creep in for many reasons like picking up wrong LH/RH parts, despatch of alternate parts, incorrect posting to alternate parts etc. Also there may be errors in noting down various types of parts during physical sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ically states that an amount equivalent to the Cenvat credit taken on input written off is payable by the assessee. He denied the contention of learned counsel that those parts which were not available during physical stock verification at its specified storage rack were subsequently found in another storage rack. 4. Rule 3(5B) ibid specifically provides that If the value of any input or capital goods before being put to use, on which CENVAT credit has been taken is written of fully or where any provision to write off fully has been made in the books of accounts, then the manufacturer or service provider, as the case may be, shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods. A plain rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with intent to wrongfully avail and utilize the inadmissible Cenvat credit, but the same has not been substantiated by producing any evidence. Merely making allegations of suppression or intention is not sufficient unless the same is established beyond reasonable doubt. The inputs were undisputedly received in the factory of the appellants and upon receipt they were properly accounted for. In our considered view rule 3(5B) ibid cannot be applied on the facts of this case as the entire case of the department is that the goods are not available in the factor whereas for the application of the said rule the goods have to be available in the factory and only a book entry is to be made to write off the value of the said goods. We are also not o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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