TaxTMI 
TaxTMI 
2018 (12) TMI 164
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....n the manufacture of excisable goods namely parts of automobiles falling under Chapter 87, machinery parts falling under Chapters 84 & 85 and parts of measuring instruments falling under Chapter 90 of Central Excise Tariff Act and are availing credit of duty paid on inputs and capital goods. Further they are sending their raw-materials such as Aluminum and Zinc Ingots to their job-work for manufacturing of casting and cleared the finished goods to their customer on payment of duty. They also engaged in supply of finished excisable goods to 100% EOU under CT-3 certification and export of excisable goods under Letter of Undertaking/under claim of rebate. Based on intelligence gathered by the Department that the appellant is taking wrong cenva....
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....f Central Excise Rules, 2002). (iii) Non receipt of processed raw material from job work: On verification of Annexure IV register it was noticed certain raw-material sent for job work not received back even after 180 days. The duty involved therein was Rs. 4,00,116/- (Rupees Four Lakhs One Hundred and Sixteen only). On being pointed out, the appellant voluntarily paid an amount of Rs. 4,00,116/- (Rupees Four Lakhs One Hundred and Sixteen only) vide entry in their cenvat account on 25.08.2007 (Contravened the provisions of Rule 16 of Central Excise Rules, 2002) (iv) Non receipt of crucibles from job work: Appellant availed cenvat credit on crucibles and sent for job work and not received back even after 180 days. The credit availed on ....
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....ave suppressed the material facts from the Department and thereby willfully suppressed the material fact with intention to evade duty and imposed equal penalty under Section 11AC. Aggrieved by the said order, appellant filed appeal before the Commissioner who rejected the same. Hence the present appeal. 2. Heard both the parties and perused the records. 3. Learned counsel for the appellant submitted that shortage of stock in the factory is worked out on the basis of physical weight of stock of work in process material as on 24.08.2007 compared with the weight of input as such received. As in process such as die casting, felting, drilling, tapping, machining which results in generation of retrievable as well as non retrievable scrap no....
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.... processing loss. As per the appellant this loss works out to 6.85 which is normal loss in a nature. The learned counsel further submitted that as per the norms only loss up to 8% to 8.5% is accepted as normal. In reply to this issue, the learned AR submitted that in their reply the assessee has accepted their 3CD return as an official record duly certified by their auditors. He further submitted that the original authority has considered this issue and has come to the conclusion that there was a shortage in raw-materials and therefore the assessee is liable to reverse the proportionate cenvat credit which works out to Rs. 6,21,166/- (Rupees Six Lakhs Twenty One Thousand One Hundred and Sixty Six only). With regard to this issue I do not fi....
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....broken and the resulting product is waste mud. He further submitted that crucibles used are in the nature of consumables and the cenvat credit on consumables is allowed. In this regard I find that the appellant could not justify from the record that the crucibles were used in the process of manufacture and it becomes waste because no records were maintained. Further the assessee has accepted the non receipt of crucibles sent for job worker for melting aluminium and zinc and therefore the duty liability on this count is also rightly confirmed. The next issue is with regard to shortage of raw-material observed after verification at job workers premises. In this regard the learned counsel for the appellant submitted that there is no record of ....