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2013 (11) TMI 845 - AT - Central ExciseClandestine removal of goods - Shortage of raw materials i.e. Ferro manganese and Ferro Molybdemum – Held that:- Shortages were worked out as per the records maintained by the appellant - The argument that the shortage could be due to burning loss, is not acceptable because burning loss of these raw materials will result only when these raw materials are heated with ferrous metals in furnace to make SS Billets - The burning loss cannot be take place at raw material stage. The contention of the appellant that difference in weight of raw material could be on account of moisture content in the raw material is also not justified and explained with the help of any documentary evidence - the moisture contain throughout the year will vary and will not make any difference in the overall weight recorded by the appellant - Appellants have therefore, could not explain the shortage of raw materials properly – relying upon RUTVI STEEL & ALLOYS Versus COMMISSIONER OF CENTRAL EXCISE, RAJKOT [2009 (7) TMI 231 - CESTAT, AHMEDABAD] - the burden of explaining the shortages is upon the assessees and Revenue is not required to show actual removal of raw materials. Penalty on Shri Pravin C. Jain – Held that:- He was fully aware of clandestine activities undertaken by M/s. Chandan Steel Limited and the shortages were not explained properly - He was aware of entire operations undertaken by the main company M/s. Chandan Steel Limited - Accordingly, penalty was correctly imposed upon him – Decided against Assessee.
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