2013 (8) TMI 128

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.... the Provisions of Cenvat Credit Rules 2004. According to the appellant there are a large number of inputs about 70 to 80, in respect of which Cenvat Credit is availed. The appellant conduct an annual stock taking of the inputs in course of which physical stock of each input is verified. In course of such stock taking in the year 2008, variation in the quantity of certain Cenvated input were found. Shortages to the extent of 5.023 MT, 0.191MT, 0.031 MT, 56.821MT, 1.103MT, 5.207KL were found in respect of Aluminium Fluoride, Flomin 99E, CGM, Hard Pitch, Soft Pitch and Furnace Oil respectively. The total Cenvat Credit involved on the above quantity, found short was Rs. 2,79,683/-. This information regarding stock taking was brought of the not....

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....tes that the variation between the actual quantity of inputs and the quantity mentioned in the records is only due to mistakes in weightment or dip-reading etc. that demand has been confirmed by the Assistant Commissioner by following an order passed by the Commissioner (Appeals), while that order, on appeal to Tribunal, was set aside vide Final Order No. 259/2009-EX[SM] dtd. 01.04.2009 that Tribunal in the case of Commissioner of Custom & Central Excise, Bhopal Vs. Jaypee Rewa Plant reported in 2005(182) ELT 397 (Tri.Del.) has held that when the shortages is only 0.21% in case of LDO & Furnace oil, the same could be on account of evaporation and Credit in respect of such shortages, is not required to be reversed, that the Tribunal in anoth....

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....m is not satisfactory, the demand of Cenvat Credit has been correctly upheld along with interest. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have considered the submission from both the sides and perused the records. The undisputed facts are that the appellant use a large number of inputs about 60 to 80, for manufacture for their final products and that the shortages, in question, are only in respect of 6 items mentioned above which had been detected in course of annual stock taking conducted by the appellant themselves. The Department does not refute appellants plea that in respect of some other items, there was excess quantity also. The point of dispute is as to whether the appellant would be eligibl....