2015 (5) TMI 1093

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....vailing the Cenvat credit on such Base Oil. On verification of input invoices of Base Oil, it was noticed that appellants had availed credit of duty on full quantity as shown in the invoices/bills, etc. However on scrutiny of the documents viz. AC-13, OUT TURN report vis-à-vis invoices, it was noticed that appellant had received base oil in short quantity. Revenue issued show cause notice F. No. V.Adj.(30)Ch-I/CR-61/IOCL/Commr./M-II/09, dated 5-1-2010 wherein demand of duty of Rs. 1,64,40,644/- was made in respect of short receipt of inputs, i.e., base oil during the period December, 2004 to March, 2009 invoking extended period of limitation. It was also proposed to recover interest and impose penalty under Rule 15(1) of Cenvat Credi....

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....ch of this Tribunal in the case of Commissioner of C. Ex., Chennai v. Bhuwalka Steel Industries Ltd. [2010 (249) E.L.T. 218 (Tri. - LB)] has discussed the matter in detail with reference to the Cenvat Credit Rules and in Para 12 have laid down criterion. It was further submitted that the Commissioner has taken note of the said decision of the Tribunal and has discussed the same in detail in his order and has observed that the permissible limit in case of lubricated base oil stock is 0.1% and therefore, benefit of 0.1% can be given. It was further submitted that in the order internal page 19 in the last paragraph, Commissioner has observed that the demand raised for the period December, 2008 to March, 2009 is sustainable and liable to be con....

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....utset we note that demand confirmed is only for the normal period of limitation. The goods involved in the present case are lubricating base oil. Ld. Counsel for the appellant has produced copy of supplement to the manual of departmental instruction on excisable manufactured product. In the said manual different limit has been prescribed for different goods and different method of transfer, etc. In the case of lubricating base oil the permissible limit is 0.1%. We also note that Larger Bench of this Tribunal in the case of Bhuwalka Steel Industries Ltd. (supra) has gone into details of various factors to be considered while permitting various losses on their receipt of the goods for purpose of availment of Cenvat credit under Rule 3(1) of C....