2017 (11) TMI 754

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....appeal against the impugned order of Commissioner. The assessee is a manufacturer of Ball Bearings and Axle Boxes liable to Central Excise duty. Assessee are availing cenvat credit of inputs and capital goods. They manufactured wide varieties of Ball Bearings and claimed to deal with 1,40,000 different types of raw materials, work-in-progress goods, finished goods, stores and supplies taken together. The Assessee conducted audit of their inventory of all items namely inputs in stock, goods-in-process, and finished stock. During the course of such verification, they found certain shortages and certain excesses in respect of various inputs as well as finished goods. 3. Based on the report of the assessee's auditors, the Revenue conducted c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the computer. The assessee undertakes with the help of cost auditor stock verification on annual basis to reconcile the inventory position. In such a situation it is but natural that minor variation (0.5% and below) do occur during reconciliation. The explanations provided by the assessee during the original proceedings have been accepted by the lower authority and he allowed the possibility of shortages and excesses in respect of various individual category of raw materials and finished goods. However, he confirmed the reversal of credit in respect of raw material found short after netting of excess with shortage among various varieties. Same method has been adopted for finished goods also. We find that the shortages and excesses found dur....