2024 (11) TMI 1078

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....n in the Cost and Audit Report, is assailed in this appeal by the Assessee-Appellant. 2. Appellant is a manufacturer of motor car falling under Chapter 87 of First Schedule to the Central Excise Tariff Act, 1985 for which it has registered and it has been availing CENVAT Credit on inputs and input services under CENVAT Credit Rules, 2004. During course of Audit and scrutiny of records vis. a. vis. verification of Cost Audit report, it was noticed that certain shortages were found in the input accounts without any evidence of its actually being used in manufacturing activity but Appellant had availed CENVAT Credit on such inputs as per Rule, 3 of CENVAT Credit Rules, 2004. Accordingly, CENVAT Credit involved in those shortages of inputs t....

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.... 2015 (8) TMI 493 (SC), would be immaterial since it demonstrated bona fideness of the Appellant in taking CENVAT Credit by recording each value of input and as such, there was no allegation of clandestine removal made against Appellant. Further submission of learned Counsel for the Appellant is that basing on the stay order passed by the Tribunal while directing for pre-deposit in the case of Tata Motors Limited, that was interim in nature, learned Commissioner had confirmed the demand when this Tribunal itself vide its order dated 14.03.2023, in Excise Appeal No. 1855 of 2012 had set aside the said demand against Tata Motors Limited, for which the order passed by the Commissioner is not sustainable in both law and facts. In submitting aff....

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.... were bound to happen when theoretical calculation was made without actual physical verification of stock, as there could be wrong entries of input, variation in weighment of input with that of rounded up figures available in the bills or that of wrong accounting but the ground taken for shortages including theft, if noticeable, would lead to different consequence. However, in the instant case, taking note of the percentage of shortages that was noticed for different financial years, when the procurement of material were too large the value of which runs in crores, such negligible shortages could be a natural consequence for which even protection is granted by the Hon'ble Supreme Court, as found in M/s. Maruti Udyog Limited case that if....