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TMI Blog2008 (9) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... i K. Sambi Reddi, the learned Departmental Representative, for the Revenue. 3. We heard both sides. 4. The appellants are the manufacturers of Iron and Steel products, which are excisable. They are regularly removing the goods on payment of duty. They conducted stock takings for the financial years 2000-01, 2001-02, 2002-03 and 2003-04 without intimation to the Central Excise Officers to enable them to associate themselves with such stock takings. It was revealed that as a result of the stock takings in respect of certain finished products, there was excess and in respect of pig iron for all the four years, there was shortage. The duty payable on the shortage of pig iron had been worked out for the three years. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a are adopted for estimating the pig iron for different purposes. Therefore, in the very nature of the accounting, there is bound to be difference. Unless it is shown that the appellants had cleared the goods without payment of duty in a clandestine manner, or in other words, unless there is evidence to show that there is clandestine clearance, this type of demand of duty is not sustainable. The Commissioner referred to the C.B.E.C. Circular No. 4/73/70-CX.6, dated 12-4-1971 has been reproduced. "C.E.-S.R.P. - Problems of Iron & Steel Industry - Regarding Since extension of S.R.P. to Iron & Steel products, the major Iron & Steel Plants have been representing about several difficulties in implementing Chapter VII-A of Central Excise Rules. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Steel Plants have represented their difficulties in serially numbering the invoices, as these are computerized. It has however, been explained by Steel Plants that the dispatch advices from their mill shops to the central point bear serial numbers. In view of this, it has been decided that machine serial numbers need not be insisted upon on invoice-cum-despatch advices. (iii) Production account and maintenance of RG-1 : It has been observed that different practices are being followed in the Steel Plants in the matter of accounting their daily production. After carefully considering the matter, it has been decided that the account of production maintained by the steel plants for their own purpose would be accepted for C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of submission of R.T. 12-14 days. It has also been agreed that since R.T. 5 return is not likely to afford a ready means of check to the central excise officers, so far as steel plants are concerned, this may not be insisted upon from the steel plants. (vi) Weight of raw materials transferred within the factory for production of finished goods : Steel plants wanted that transfer of such material might be followed on the basis of sectional weights and actual weighment need not be insisted upon. In view of the established practice showing sectional weights and the difficulties in taking the actual weight in many cases, this has been agreed to." 4.1 It has also been decided that since the production in many instanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case would be applicable for this case also. In the case decided by us also the steel products are involved. We are reproducing the findings given in that order : "We have gone through the records of the case carefully. The demand has been issued under Rule 223A covering a period of 13 years from 31-3-1998 to 31-3-2001. The Revenue has issued the show cause notice on the belief that Section 11A is not applicable for demands made under Rule 223A. The Department's view is not correct in terms of the judicial pronouncements cited by the appellants. There is no allegation that the appellants have removed goods in clandestine manner. Moreover, the stock taking was done by the appellants themselves. The departmental officers only associated wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s inherently inaccurate. Losses like cutting, grinding and milling, scale loss after heat treatment and straightening, reprocessing after inspection at various stage of manufacture are not recorded in RG-1. Rejections are not recorded while accounting for quantity produced or issued in the form of sections and ingots. Shortage is inflated due to errors in taking opening balance as on 1-4-1998 and physical stock on 31-3-2001. Considering the practical difficulties, in estimating the actual stock and in view of the submissions made by the appellants, we find that the demand of duty made by the adjudicating authority cannot be sustained. Therefore, we allow the appeal with consequential relief." (b) Similarly in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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