TaxTMI 
TaxTMI 
2004 (7) TMI 559
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....Mumbai (hereinafter called the Applicant) and Shri P. Shreedharan, Principal Officer, Excise, of the Applicant company (hereinafter called the co-Applicant). 2. Facts of the case in brief are that the Applicant is a manufacturer of Tractors, internal Combustion Engines and parts thereof falling under Chapters 84-87 of the Central Excise Tariff Act, 1985. The Applicant was availing Modvat/Cenvat credit on the inputs. The applicant maintained computerised records of the inventories comprising, inter alia of work in progress, manufactured components, assemblies, manufactured tools and finished goods. On the basis of intelligence that the Applicant was carrying out physical verification of stocks at the plant as well as at the stages of m....
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....004 when the Applicant and the co-Applicant were represented by Shri M.K. Shroff, Advocate when S/Shri Anil R. Wani, Amit Pradhan, Advocates, S/Shri P. Sreedharan, N.V. Patel and Mohan Raghavan were also present. The ld. Advocate explained the case briefly. When the Commission asked as to how the shortages occurred, Shri Raghavan, G.M. (Excise) explained the same highlighting that this had not occurred on account of any planned action or mala fide. The ld. Advocate, Shri Shroff, pleading for immunity in respect of interest submitted that since they have paid major part of the duty before issue of the Show Cause Notice, immunity may be granted especially in view of the fact that proviso to Section 11A(1) is not attracted nor there is any all....
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....andestine removal nor could any mala fide intentions be imputed in respect of shortages noticed. At best, it is a case where accounting of consumption of modvatable raw materials was not perfect because of involvement of a huge number of inputs whose consumption was being accounted for on the basis of "Standard Costing System" rather than actuals. The percentage of shortages is also much below 1 per cent. We find that the Applicant has made a true and full disclosure and accepted the duty liability which is equivalent to the duty demanded in the Show Cause Notice and paid the same. In this view of the matter, the case is settled as under :- 7. Central Excise Duty :- The total duty involved in this case is Rs. 283.03 lakhs which have a....