AI Drafter 
TaxTMI 
TaxTMI 
2017 (11) TMI 755
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....ched the factory premises as well as head office in Delhi on 20.12.2011 and recovered certain records considered as incriminating. The stock of finished goods in the factory was verified with the that in the relevant books and the statements of all connected persons were recorded. After conclusion of investigation in the case, proceedings were initiated against the appellants which resulted in the impugned order. The ld. Commissioner confirmed duty demands along with interest as well as penalties on three different charges: i) Clandestine removal of 2420 pieces of water closet noticed at the time of stock taking undertaken at the factory - duty of Rs. 20,07,789/-. ii) Irregular availment of Cenvat credit amounting to Rs. 22,70,294/-. ....
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....legally admissible as these services are in the nature of input services. Merely because bills of service providers were issued at the head office address, the credit cannot be denied. iii) Non registration of head office address is a procedural lapse. Substantial benefit cannot be denied on procedural lapses. iv) They have a single manufacturing unit in Neemrana and hence the entire service tax credit could be transferred by the head office to their unit. Pertaining to clandestine removal of 6847 pieces of finished goods: i) These goods were those which did not meet the required quality specifications for the goods. Hence these were not entered in RG-1 pertaining to finished goods. The goods where lying in the factory but the s....
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....rtage of 2420 pieces of water Closet. The main grievance of the appellant appears to be that the procedure of stock taking was not proper, the stock was arrived at on the basis of eye estimation, and also that the stock taking could not have been completed in half day. 9. On perusal of record, we notice that at the time of stock taking, the Departmental officers were accompanied by Sh. Naval Kishore Vashisht, DGM of the unit. The procedure adopted to ascertain the stock was very well known to the DGM since he was present throughout the stock taking exercise. The same is also recorded in the Panchnama. Sh. Vashisht has also not expressed any dissatisfaction of the procedure adopted upon conclusion of the stock taking. In view of the above....
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....istration for the head office is only a procedural lapse and the substantial benefit of Cenvat credit cannot be denied for such procedural lapses. They have further claimed that all such credits have been availed only in respect of services which are otherwise eligible for being termed as input services. But the adjudicating authority has recorded that the head office has transferred such credit in a consolidated manner without mentioning the details of the service providers from whom the services where received. It has further been observed that some of the credits are also clearly inadmissible such as credits on foreign trips of the Director, credits pertaining to maintenance of sales outlets etc. 11. In the facts and circumstances of ....
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....y but can be subjected to refining to remove defects iii) "D" for those goods which are destroyed and iv) "S" for those goods which did not match the quality standards of the particular order. 13. Goods categorised under "S" were neither destroyed nor accounted in the stock register and were packed for further dispatch to prospective buyers. During investigation, from the appellant's documents, it was determined that total of 6847 pieces of category "S" were produced in the factory but the same were not reflected in stock register RG-1. These goods were also not found during the stock taking in the factory. Hence it was concluded that these goods were cleared clandestinely without accounting and without payment of duty. 14. The ....