Custom, Excise & Service Tax Tribunal
M/S. Ester Industries Ltd vs C.C.E Meerut-Ii on 3 September, 2013
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI, PRINCIPAL BENCH
Date of Hearing: 11.06.13
Date of Decision:
Appeal No. E/2756/2011-EX[SM]
[Arising out of Order-In-Appeal No.385-CE/MRT-II/2011 dt.28.07.2011 passed by Commissioner of Central Excise, Meerut]
For approval and signature:
Honble Ms. Archana Wadhwa, Judicial Member
1
Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2
Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3
Whether Their Lordships wish to see the fair copy of the Order?
4
Whether Order is to be circulated to the Departmental authorities?
M/s. Ester Industries Ltd. Appellants
Vs.
C.C.E Meerut-II Respondent
Appearance:
Sh. R. Santhanam, Advocate - for the Appellants Sh. R.K.Verma, AR - for the Respondent CORAM:
Hon'ble Ms. Archana Wadhwa, Member (Judicial) FINAL ORDER NO:- 57494 /2013 Per Archana Wadhwa:
1.1 The appellant are engaged in the manufacture of Polyster Film and were availing the benefit of Cenvat Credit of duty paid on various inputs/capital goods as well as of Service Tax paid on input services. It is seen that as a result of audit objection, it was found that there was shortage of inputs in appellants factory on which they have taken credit to the extent of Rs.2,50,146/-. Accordingly proceedings were initiated resulting in confirmation of demand and imposition of penalty. The said order of the Original Adjudicating Authority was upheld by Commissioner (Appeals). Hence the present appeal.
2. Heard both the sides, I find that for arriving on findings of shortages of inputs, Revenue has relied upon the management own stock taking inventory made by them. Such inventories were taken note of by the audit, on the basis of which Show Cause Notice was issued. During the course of proceedings before the Lower Authority, the appellant contented that there was no actual shortages of the inputs and they were in position to give re-conciliation of entire figures. Such re-conciliation statement now stands placed before the Tribunal.
3. I find that entire case of the Revenue as regard shortage of Cenvatable inputs is based upon the inventory made by the appellant himself during the course of their internal stock taking. There is no allegation or evidence that the said inputs were either not received by the appellant or stands cleared by them without payment of duty. As such, such shortage in the stock conducted by the appellant themselves for the purposes of re-conciliation of their entire stock can not be made the basis for confirmation of demand of duty against them or for imposition of penalty. Accordingly, in the absence of any evidence to reflect upon clearance of such inputs, I find no justification for upholding the impugned order. Accordingly I set aside the same and allow the appeal with consequentially relief to them.
[Order pronounced on__________] (Archana Wadhwa) Member (Judicial) S.Kaur 1