Inventory mismatch of RM PM

[Asked by Guest]

Dear Team,

the above subject mention, we have reconcile and found short inventory of RM PM.

in this case can we reverse excise duty. kindly request give your opinion with reference.

Regards,

Pradip

AI Summary

Reversal of cenvat credit for unexplained raw material shortages may trigger interest, investigations, or departmental scrutiny.
Unexplained shortfall on physical stock verification may require reversal of CENVAT credit with interest; voluntary self-reversal typically prevents a show-cause notice or penalty. Tribunal authority and commentary caution against automatic duty demands based solely on stock-taking, noting accounting errors and tolerance limits; departmental discretion to accept reconciliations or pursue investigations remains, and VAT input credit should also be considered when regularising shortages.