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2016 (8) TMI 531 - AT - Central ExciseDemand - Differential duty - unexplained shortage of raw materials - stock verification method adopted - Held that:- it is found that in the method of stock verification adopted, there is bound to be variation. Further the variation found is about 10% in the case of raw material and less than 5% in the stock of finished goods which I hold as normal variation in such method of calculation. Secondly it is found that the appellant had given cogent explanation regarding the shortage of raw material within 5 days of inspection, by stating that the raw material charged in the furnace had escaped to be noticed in the stock verification and the same was not entered in the stock records/RG1, and accordingly there is no discrepancy in the stock of raw material. Therefore, the variation found is a normal variation and no adverse inference could be drawn. - Decided in favour of appellant
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