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2015 (3) TMI 866

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..... iled by the Department before the Tribunal. - In the absence of any such material, there is no possibility for this Court to consider this issue at all. The next question is whether stock taking conducted on eye estimation is fatal to the case of the Department. We find that the order of the Tribunal is not on the basis of visual inspection, but based on mahazar records recording the shortage of goods, which has been done in the presence of the independent witnesses and such shortage was supported by the unretracted statement of Mr.Balaji, Manager of the assessee company. In this view of the matter, the non-recording of the correct quantity of goods in the statutory record, viz., RG.1 register maintained by the assessee establishes the case .....

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..... uram Division visited the unit of the assessee and challenged the physical stock of CTD Bars and waste and scrap of CTD Bars lying in open space in the presence of Shri.J.Balaji, Manager, Authorised Signatory and two independent witnesses, namely, Shri.P.Rajalingam and Shri.P.Selvam. During inspection, it was found that there was shortage of 103.655 MT's of CTD Bars and 51.965 MT's of waste and scrap of CTD bars as against the stock declared in the stock register of finished goods (RG.1) maintained by them. A mahazar was drawn and a statement was recorded under Section 14 of the Central Excise Act, 1944 and a show cause notice dated 08.11.2006 was issued demanding duty at ₹ 4,40,097/-. The said demand was confirmed in the orde .....

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..... he order of the Tribunal that the Tribunal did not accept the findings of the Commissioner (Appeals) that the shortage could not be ascertained in the manner done by the Department, on the contrary, it is the specific finding of the Tribunal that the mahazar recording the shortage has been signed by Mr.Balaji and during cross examination, the assessee had not been able to establish that the recording of shortage was erroneous. On facts, the Tribunal came to hold that the Superintendent of Central Excise Mr.Madhanagopal has recorded the statement of Balaji, who stated that the same lorry that was available in the factory was used for weighment of the goods and that the mahazar did not say anything about the lorry being put to use for weighm .....

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