TMI Blog2015 (2) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... is seen that as per Superintendent s verification report submitted to the jurisdictional Assistant Commissioner, there was no stock of finished goods in the factory as on 31.3.2009 and also there was no stock of raw materials procured without payment of duty as on 31.3.2009.The trial balance sheet placed on record simply mentions the stock of material valued at ₹ 92 lakhs as on 1.4.2009. Thus, from this entry in the trial balance sheet, it cannot be presumed that this stock entry was of finished goods, as the same could be duty paid raw materials or packing materials etc. The appellant s plea is that prior to de-bonding, they had started procuring packing material adhesives from domestic services etc. and had stopped procuring duty fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 2007-08 and 2008-09 respectively and accordingly there would have been closing balance of 1388 pkts as on 31.3.2009 as well as on 23.4.2009. However as per the appellant s records (RG-1 register), there was nil balance as on 31.3.2009.The department was of the view that duty of ₹ 16,89,759/- is chargeable on the finished goods (1388 pckts) lying in stock as on 1.4.2009 under the proviso to Section 3(1) of the Central Excise Act, 1944. 1.2 The trial balance sheet of the appellant for the period 1.4.2009 to 31.7.2009 showed stock of the material valued at ₹ 92 lakhs as on 1.4.2009 and assuming the stock to be of finished goods, the department was of the view that duty amounting to ₹ 32,83,532/- would be chargeable on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 683/2013 has been filed against the order of Commissioner (Appeals) directing the pre-deposit; the second appeal No.E/51478/2014 has been filed against the final order of Commissioner (Appeals) dismissing the appeal. 2. Heard both side. Though these matters are listed for hearing of the stay applications, after hearing the same for some time, the Bench was of the view that the matters can be heard for final disposal. Accordingly, the requirement of pre-deposit is waived and with the consent of both the sides, the matters are heard for final disposal. 3. Shri O.P. Agarwal, Chartered Accountant, the ld. Counsel for the appellant, pleaded that NOC prior to de-bonding had been given by the Assistant Commissioner after physical verificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri M.S. Negi, ld. D.R. defended the impugned order by reiterating the findings of the Commissioner (Appeals) as well as of the order of Additional Commissioner, Central Excise. 6. We have considered the submissions from both the sides and perused the record. The duty demand of ₹ 32,83,532/- has been confirmed on the stock of the material valued at ₹ 92 lakhs alleged to be the stock as on 1.4.2009 when the unit was 100% EOU. These stock of material shown in trial balance sheet for the period from 1.4.2009 to 31.7.2009 has been assumed by the Department to be the stock of finished goods. Accordingly the duty has been demanded on this stock on the ground that at the time of de-bonding, duty on the entire stock of finished goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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