TMI Blog2008 (10) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... age of 256.856 MTs of steel wire rods had existed in the appellant s factory as on 26-7-2003 (the date from which they did not pay duty on drawing of wires from wire rods), (b) that the shortage had arisen as a result of incorrect reading or loss of weight during transit, (c) that the aforesaid quantity of 256.856 MTs of raw material had not been sold or otherwise disposed of by the appellants and (d) that the Cenvat credit taken on the above quantity of raw material was liable to be reversed. The department accordingly demanded Rs. 13,08,477/- equivalent to the Cenvat credit which had allegedly been wrongly availed by the appellants on the aforesaid quantity or raw material. Certain amount which had been paid under protest was sought to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at there was no stock verification of the goods at any stage, that the show-cause notice proceeded on the basis of results of verification of records, that the show-cause notice relied on proceedings of sales tax and income tax authorities without regard to the fact that there was no sale of raw material as such from the assessee s factory as also the fact that the entire amount of duty paid on the raw material covered by the relevant invoices had been collected from the assessee by the supplier. It is submitted that the reviewing authority proceeded on an error of fact inasmuch as the show-cause notice had not alleged diversion of raw material whereas the reviewing authority considered the department s case to be that a quantity of 289.486 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every invoice was duly entered in RG-23A Part-I. Quantities of inputs issued to the floor of the factory were also accounted. There is no allegation that any part of the input was sold as such or otherwise diverted. All the weighments were made outside the factory. In their reply to the show-cause notice, the party referred to the chances of errors which could result from weighments having been made on different weighbridges. It is also noted that the show cause notice itself admits that the shortage had arisen as a result of incorrect reading or loss of weight during transit. In any case, as no physical stock verification of the raw material in the factory was ever done and the entire case of the department is based on records, it is pract ..... X X X X Extracts X X X X X X X X Extracts X X X X
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