2008 (3) TMI 533

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...., for the Respondent. [Order]. -  After examining the records and hearing both sides, I find that Cenvat credit of Rs. 56,822/- was denied to the appellants on the ground that the inputs were not received in their factory. Equal amount of penalty was also imposed on them. Shortages to varying extents were found in respect of 13 items of inputs on the basis of the appellant's internal au....

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....selves. Their claim for set off also cannot be accepted as rightly observed by the lower authorities. In the result, the decision to disallow Cenvat credit on the inputs found short is sustained. However, there appears to be no basis for the penalty imposed on the party under Rule 13(2) of the Cenvat Credit Rules, 2002. This provision provided for penalty on a person found to have taken or utilise....