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2017 (5) TMI 382 - CESTAT ALLAHABADClandestine removal - shortage of stock - storage loss - whether duty has been rightly demanded on the shortage found in the stock of raw materials and/or finished goods at the time of inspection in the factory of the appellants? - Held that: - there have been no actual weighment of the whole stock lying in the factory premises. Only a sample of the stock was weighed and the same was multiplied with the number of bags and Ingots etc, as could be counted or estimated. Thus, the fact of estimation of the stock is evident on the face of the record - in such manner of stock taking, there are bound to be variation and/or discrepancy. The variation in the case of sponge iron is less than 20%, whereas the variation in the stock of MS Ingots is about 55%. The variation in stock of sponge iron is considered as normal variation and the same does not attract any adverse inference. So far stock of MS ingots is concerned, there is a variation about 55%. Considering the variation of 20%, as normal, the demand on the balance shortage of MS ingots, lying in the furnace division as well as rolling mill division, confirmed. Penalty - Held that: - in view, the facts on record, there is no instance of any clandestine activity and/or removal of Excisable Goods - it is not a fit case for penalty u/r 25 of CER read with Section 11AC of the Act. Appeal allowed - decided partly in favor of appellant.
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