2018 (11) TMI 1206

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....a) The appellant had transferred imported goods (used as inputs) to their Taloja Factory during May 2008 to January 2010 without reversing proportionate credit of SAD Rs. 3,07,140/- demand of the same was confirmed. b) The departmental officer conducted a physical verification of stock and drawn panchnama dated 04/05.02.2010 wherein there was shortage of raw materials/ packaging material on comparison to balancesheet as on 4.2.2010 in the ERP system totaling to 1,15,549.43 Kg/ Ltrs/No.s valued at Rs. 1,33,48,761/- which are alleged to have been removed as such by the appellant without reversing the cenvat credit. On this count a demand of Rs. 13,90,462/- was confirmed. Penalty of equal amount of Rs. 16,97,602/- was also imposed under Sec....

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....e, the book stock was taken from the record maintained on ERP system. The ERP system was not proper there was some glitch in the system. To this effect, he referred to a letter dated 25.02.2010 issued by their software copany M/s Comsoft Mediatec Enterprises from which it is clear that there was a technical snag in the system, hence, the stock shown in the ERP system is not proper, therefore, it cannot be said that there is shortage of goods. He further submits that as regard the statement of Sh. Sameer Parekh, Director of the Company, it was taken in threat and duress, the statement was subsequently retracted by submitting a retraction in the form of affidavit. He submits that Sh. Sameer Parekh is mostly based at Mumbai and now looking aft....

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.... the sides and perused the records. 6. I find that as regard the demand of Rs. 3,07,140/- towards the SAD, I find that the inputs were removed from appellants one unit to their own another unit and the recipient unit is entitled for the Cenvat Credit, in this fact the entire exercise is Revenue/appellant neutral. Their cannot be any malafide intention to remove the input without reversing the SAD as there is neither any gain nor loss to the Revenue in reversing the credit. Therefore, being the case clearly of Revenue neutral the demand is not sustainable. As regard, the issue of shortage of raw material and packing material wherein a demand of R.s 13,90,462/- was confirmed, I find that the demand is mainly based on the statement of Sh. S....