2017 (11) TMI 1099

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.... was submitted by the appellant. On physical verification, certain quantity of inputs was found short, which amount to 0.35% of the total inputs used by the respondent in manufacture of the final product. Revenue issued a show-cause notice to the respondent to deny CENVAT Credit on the said inputs on the ground that as there was shortage, therefore, they are not entitled to avail CENVAT Credit on the short inputs. The adjudicating authority confirmed the demand on by denying the CENVAT Credit on shortage. On an appeal, the learned Commissioner (Appeals) held that as shortage is of meager quantity, he allowed the CENVAT Credit. Aggrieved from the said order, Revenue is before me. The respondent has also filed cross-objection. 3. Heard the....

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....urs due to error in booking movement of the goods during the process of manufacture. Such errors in booking movement of goods in the systems creep in due to the following reasons. a) Time delay between the actual movement of goods and its recording in the systems. b) Accounting Errors c) Errors in physical verification of stock due to visually unidentifiable differences. 15. I find that the appellant manufactures broadly similar however non identical products for different customers. In such a scenario the products manufactured may appear to be same or similar however it may carry a minor difference of weight, design etc. as per the different requirement of different customers. Further the final products ....

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....ing of shop rejection of components in SAP by production personnel in the zeal to show better efficiency to management resulting in shortages at the time of physical verification. • Oversight of personnel and staff, due to which goods that may have been missed out in a previous physical inventory are added in subsequent one. Consequently at the time of omission, shortages are reflected and when included in a subsequent verification, would be reflected as excesses. • During the course of Audit from 24.02.2014 to 27.02.2014 a physical inventory variance report as on 31.03.2013 showing location book quantity, physical quantity, difference and its value was submitted by the applicant vide letter dated 20.05.2014. As pe....