2017 (12) TMI 692

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....goods falling under Chapters 84 and 87 of the Central Excise Tariff Act, 1985. They are availing of the facility of CENVAT credit of the Central Excise duty/service tax paid on the inputs, capital goods and input services used in the manufacture of their final productions, under the provisions of the CENVAT Credit Rules, 2004. In the course of the audit of the records of the appellant for the year 2010-11, it was observed that there was a shortage of the inventory of inputs reported during year end stock taking; that the value of such shortage amounted to Rs. 1,36,80,118/- and the duty liability thereon was Rs. 14,09,052/- (BED Rs. 13,68,012/-, Education Cess: Rs. 27,360/- and Secondary Education Cess: Rs. 13,680/-); that such shortage mean....

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....nds explaining the reasons for shortages in the stock but the Commissioner (A) was not convinced with the reasoning given by the appellant. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the Commissioner (A) has failed to examine the documentary evidence produced by the appellant explaining the reasons for the shortage of inputs. He further submitted that the shortages/excess is on account of accounting error in SAP in shop floor. He also submitted that the appropriate adjustments are made in material suspense account. He further submitted that no dispute is raised in the show-cause notice about the clandestine removal nor any evide....

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....find that the Commissioner (A) in the impugned order has observed that the assessee has not produced the documents explaining the shortages in the inputs. He has further observed that on verification of the appeal papers, he found that the physical verification report claimed to have been enclosed as Annexure 4 are not forthcoming. Further, he has also observed that none of the Annexure 1 - 4 claimed to have been enclosed to their appeal memo is found to be enclosed and therefore, the learned Commissioner observed that their claim of having reconciled their account and having made the good the impugned shortage is unsubstantiated in the absence of any relevant supporting evidence. Though the appellant had filed all these documents before th....