TMI Blog2006 (5) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... dent. [Order]. The facts of the case are consequent upon the visit of Central Excise officers in the appellants premises certain shortages in finished products and raw material were detected which were admitted by the appellants and duty on the same was confirmed and penalties were imposed. 2. The learned advocate for the appellant submits that in this case the shortages were detected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Malwa Cotton Spinning Mills Ltd. v. C.C.E. Chandigarh - 2003 (155) E.L.T. 161 wherein it was held that demands based on excesses/shortages in stock arrived at on the basis of mere visual examination without actual weighment of loose stock and bills not sustainable. It was submitted in this case also Vice President of the appellants company was present at the time when the examination of the sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how cause notices were held time barred when there was a delay in issue of show cause notice from two to three years from the date of completion of investigation. 4. The learned J.D.R. on the other hand submits that the shortages have been admitted by the appellant which has not been denied till date and therefore the order cannot be faulted for the same. As regards limitation it was submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence in the stock and raw material was due to the fact that the stock was ascertained on visual basis as compared to the RG 23A Part 1 register. Therefore, on that date also there was no clear admission. In view of this following the Tribunal decision in Malwa Cotton Spinning Mills case (cited supra), I hold that the demand cannot be sustained merely on the basis of visual examination which is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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