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TMI Blog2024 (11) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... res available in the bills or that of wrong accounting but the ground taken for shortages including theft, if noticeable, would lead to different consequence. However, in the instant case, taking note of the percentage of shortages that was noticed for different financial years, when the procurement of material were too large the value of which runs in crores, such negligible shortages could be a natural consequence for which even protection is granted by the Hon'ble Supreme Court, as found in M/s. Maruti Udyog Limited case [ 2004 (6) TMI 155 - CESTAT, NEW DELHI ] that if shortages is very negligible and there is no allegation of clandestine removal or even no proof of excess clearance of final products or inputs as such, availment of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort, it was noticed that certain shortages were found in the input accounts without any evidence of its actually being used in manufacturing activity but Appellant had availed CENVAT Credit on such inputs as per Rule, 3 of CENVAT Credit Rules, 2004. Accordingly, CENVAT Credit involved in those shortages of inputs to the tune of ₹2,93,39,629/- was proposed to be denied and Appellant was put to show-cause cum-demand notice for its recovery. Matter was adjudicated that resulted in confirmation of duty demand alongwith interest and penalty as proposed in the show-cause notice, by the Adjudicating Authority vide above noted order and Appellant is before us challenging legality of the said order. 3. During the course of hearing of the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s interim in nature, learned Commissioner had confirmed the demand when this Tribunal itself vide its order dated 14.03.2023, in Excise Appeal No. 1855 of 2012 had set aside the said demand against Tata Motors Limited, for which the order passed by the Commissioner is not sustainable in both law and facts. In submitting affidavit of the General Manager (Finance) of the Appellant Company, certificate issued by the Cost Accountant and by the Chartered Accountant in placing the calculation for both shortages and excess, he further submitted that their case would squarely fit in to the facts of the case of Maruti Suziki India Limited judgment delivered by the Hon'ble Supreme Court that can be applied in Appellant s case in setting aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shortages that was noticed for different financial years, when the procurement of material were too large the value of which runs in crores, such negligible shortages could be a natural consequence for which even protection is granted by the Hon'ble Supreme Court, as found in M/s. Maruti Udyog Limited case that if shortages is very negligible and there is no allegation of clandestine removal or even no proof of excess clearance of final products or inputs as such, availment of credit by the manufacturer need not be interfered with. In Appellant s case except for FY 2009-10 percentage of shortages in rest of years, to which extended period was unnecessarily invoked, since in its preceding 3 years shortages were even much lesser than the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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