9911796707
TMI Blog2023 (11) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... to be expunged. On being pointed out by department they have immediately accepted the demand and paid the amount at the time of filing the appeal. Taking note of the fact that the appellant is not contesting this amount admitted by them and as these invoices have been reflected in their ER.1 returns, it is found that it is a bonafide mistake on the part of the appellant that these invoices were not included in the closing stock. The demand raised beyond the normal period cannot sustain. Assessee succeeds on the ground of limitation. However, as the liability to the tune of Rs.1,38,141/- is admitted and not contested in this appeal, the same is upheld along with interest. The impugned order is modified to the extent of upholding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices before such option is exercised shall be required to pay an amount equivalent to the CENVAT credit, if any, allowed to him in respect of inputs lying in stock or in process or contained in final products lying in stock on the date when such option is exercised and after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining shall lapse and shall not be allowed to be utilized for payment of duty on any excisable goods, whether cleared for home consumption or export . 3. On verification of records of the appellant pertaining to the year 2006-07 the closing stock as on 31.03.2007 showed that assessee had a stock of raw materials of 100.970 MTs as on 31.03.2007 on which they had a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel that the appellant had expunged the entire credit prior to 31.03.2007 while moving as an SSI exemption benefit unit. It is the case of the department that the last clearances made by the appellant is on 15.03.2007. After such date, the appellant has again procured raw material by various invoices as shown in para-7 of the OIO. For this reason, the department is of the view that the closing stock furnished by the appellant as per the balance sheet cannot be accepted. It is thus alleged by the department that there would be much more quantity of inputs and finished goods which contained input stocks as on 31.03.2007 before they opted for being an SSI unit. 5.1 Ld. Counsel adverted to the discussions from paras 6 to 9 of the OIO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is recorded that department had verified the details and obtained a report from the Divisional Officer, there is no such report placed as relied upon document. A copy is not furnished to the appellant and appellant does not know how the department has enhanced the input stock other than those five invoices admitted by them. In para 12 it is merely stated that there are five invoices which are not disclosed in the closing stock and therefore, the contention of the appellant with regard to closing stock disclosed in the balance sheet cannot be accepted. Ld. Counsel thus argued that demand raised other than Rs.1,38,141/- is without any basis and may be set aside. 5.3. Ld. Counsel argued on the ground of limitation also. It is submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant has suppressed facts with intent to evade payment of duty. It is prayed that the appeal may be dismissed. 7. Heard both sides. 8. The issue is with regard to the demand of duty on the allegation that the appellant has not included the entire input stock for the purpose of expunging the credit during transition from duty paying unit to the SSI unit. In page 45-47, the appellant has enclosed the balance sheet showing closing stock which has been certified by the Chartered Accountant. It shows the value of input closing stock as on 31.3.2007 as Rs.64,22,112/-. However, this figure is disputed by the department for the reason that after the last clearance of the finished product by the appellant they have procured raw material un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. For this reason, we find that the demand over and above Rs.1,38,141/- cannot sustain and requires to be set aside which we hereby do. 10. From the facts, we find that the appellant had disclosed the purchase of raw materials after 15.3.2007 in their excise records and also in the cenvat registers. It is submitted by the learned counsel that they had not included this in the closing stock on the understanding that the only the credit availed by them upto the last clearance is to be expunged. On being pointed out by department they have immediately accepted the demand and paid the amount at the time of filing the appeal. Taking note of the fact that the appellant is not contesting this amount admitted by them and as these invoices have ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
