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TMI Blog2022 (6) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... the supplier through appropriate debit notes raised by recipient. No such document is placed on record. There is no evidence of any of inputs having been returned to supplier or rerouted elsewhere. The lower authorities are, themselves, not certain that duties, to the extent of quantity not received, have been re-credited by the manufacturer as is evident from the finding referred to. It is only by adverse presumption that the liability under rule 14 of CENVAT Credit Rules, 2004 has been ordered for recovery. Furthermore, rule 3 of CENVAT Credit Rules, 2004 does not offer any adjustment towards tolerance or allowance and, yet, the lower authorities have deigned to provide for some arbitrary margin; implicit in the sheer arbitrariness is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CAL) Ms Payal Nahar, Advocate for the appellant Shri N N Prabhudesai, Superintendent (AR) for the respondent ORDER The dispute in this appeal of M/s Savita Oil Technologies Limited, a manufacturer of products utilizing base oil and other petroleum oils as inputs, arises from recovery ordered consequent to the finding that credit had been irregularly availed on inputs said to have been received in their factory as evidenced by the difference between the quantity indicated in the invoice and that in the goods receipt notes (GRNs) recording the actual offloading from the tankers generated for internal use after weighment of tankers laden and empty. Two notices issued to them, covering the period from November 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r by the Tribunal in Savita Oil Technologies Ltd v. Commissioner of Central Excise, Belapur [final order no. [ A/86097/2019 dated 14 th June 2019 ] disposing off appeal no. 682 of 2011 against order-in-original no. Belapur/37-38/Bel- II/SLM/2010-11 dated 18th January 2011 of Commissioner of Central Excise, Belapur] as well as in setting aside of recoveries confirmed by first appellate authority for other periods. It was submitted that these decisions had followed earlier rulings of the Tribunal in their own disputes besides that of Neera Enterprises v. Collector of Central of Central Excise, Chandigarh [ 1998 (104) ELT 382 (Tribunal) ] and in Commissioner of Central Excise, Rajkot v. Bombay Dyeing Mfg Co. Ltd [ 1998 (97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tolerance limit of 0.4% is acceptable norm in the case of lubricating oils being received in tankers. Hence, duty is recoverable in respect of the loss more than 0.4% and recovered through debit notes. 6. In re Savita Oil Technologies Ltd v. Commissioner of Central Excise, Belapur it was held that 5. It is seen that the order cited on behalf of appellant has settled the issue based on earlier orders of the Tribunal in their own matter. Likewise the decision of Tribunal in Neera Enterprises v. Collector of Central Excise, Chandigarh [1998 (104) ELT 382 (T)], Commissioner of Central Excise, Rajkot v. Bombay Dyeing Mfg Co Ltd [1998 (97) ELT 101 (T) and host of others on similar lines preclude the recovery of duty in consequence o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- and set aside the penalties imposed on Shri Satish Talwar . 7. Availment of CENVAT credit of duties paid on inputs is enabled by rule 3 of CENVAT Credit Rules, 2004. The credit taken by the appellant is the duty of central excise paid by the supplier as recorded in the invoices and any difference in quantity, manifested in goods receipt note (GRN) on actual weighment at place of receipt, does not alter the tax thus borne on the goods except when credit accrues to the supplier through appropriate debit notes raised by recipient. No such document is placed on record. There is no evidence of any of inputs having been returned to supplier or rerouted elsewhere. The lower authorities are, themselves, not certain that duties, to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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