TaxTMI 
TaxTMI 
2016 (10) TMI 823
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....ber, 2009, difference in consumption of raw material was noticed, as reflected between raw material recorded in register and in balance sheet. 2. The matter was taken up by their jurisdictional Central Excise authorities in July, 2011 requiring the appellant to explain the difference in consumption of raw material between 3 CD and form IV. In reply to the said communication of the Superintendent, the appellant submitted that difference in consumption of raw material between 3 CD and Central Excise form IV is only a clerical mistake for which they had already filed a CA certificate. There is no provision in the Income tax for acknowledgement from any authority. They have also filed the documents showing the opening and closing balance relat....
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....take has occurred due to clerical error. As per the raw material ledger copy in form IV , there is no objection by the audit party as regards the opening balance or closing balance. This fact has been over looked by the appellate authority and the only difference in the purchase and consumption figures, at the time of finalization of accounts has occurred on clerical lapse. Such clerical lapse cannot be made ground for disallowance. The appellant also submitted that they recycled scrap like runner and risers used mould and scrap from slag and use it captively in their furnace with their raw materials, the quantum of such recycled scrap stand reflected in their records maintained for the said purpose. The same has not been taken into account....
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.... register, in respect of consumption of 250.442 MT sponge iron and 832.431 MT of MS scrap. Primarily, the demand stand confirmed on the basis of above difference between the raw material register and the balance sheets for the year 2007-2008, 2008-2009. The Revenues allegations are that the appellants have availed the credit in respect of said raw materials which stand used by them in the manufacture of final product which was cleared clandestinely. 8. Apart from the fact that the appellant had explained such difference and have attributed the same to clerical mistakes at the time of finalization of their accounts, the fact remains that no difference in the opening balance and closing balance of raw material stand detected by the officer. ....