TMI Blog2005 (10) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... ry accurate, as it has got its own limitations. It should also be appreciated that there are practical problems in steel plants in the matter of accounting of their production. The CBEC Circular No. 52/79 Cx.6, dated 26-10-1979 has also laid down certain guidelines with regard to condonation of losses observed during annual stock taking. The appellants' submission that the excess/shortage noticed was only marginal should have been given its due consideration. The Tribunal in the case of M/s. Micro Forge (I) Pvt. Ltd. v. CCE,[ 2004 (2) TMI 180 - CESTAT, MUMBAI] has held that when the stock position is arrived at on the basis of estimation, the allegation of shortage of stock and consequent illicit removal of finished goods cannot be sust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs of the adjudicating authority. 3. Shri M. S Nagaraja, learned Advocate appeared for the appellants and Shri K. S. Bhatt, learned SDR for the Revenue. The learned Advocate submitted that the demand covers a period of 13 years from 31-3-1998 to 31-3-2001. Moreover, the demand cannot be made under Rule 223A, because under Rule 223A the Commissioner is supposed to order verification of stock of the finished goods. But in the present case, the appellants themselves conducted the stock verification and the departmental officers simply associated themselves with the verification. In these circumstances, Rule 223A cannot be invoked, as all the ingredients of Rule 223A have not been fulfilled. The stock verification is based only on estimation. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment's view is not correct in terms of the judicial pronouncements cited by the appellants. There is no allegation that the appellants have removed goods in clandestine manner. Moreover, the stock taking was done by the appellants themselves. The departmental officers only associated with the same. Hence, the stock taking cannot be said to have been conducted in terms of Rule 223A of the C.E. Rules. In any case, the shortage arrived at is based on estimates. The estimate cannot be said to be very accurate, as it has got its own limitations. It should also be appreciated that there are practical problems in steel plants in the matter of accounting of their production. The CBEC Circular No. 52/79 Cx.6, dated 26-10-1979 has also laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X
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