TMI Blog2008 (9) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... l Excise officers conducted preventive checks in the presence of two independent panchas (witnesses) and Shri R.S. Sharma, Manager Operation/Authorised Signatory of the appellants. During the preventive checks, the Central Excise officers found shortages of various inputs viz. Acetic Acid, Glycerine, Butyl titale Monobier, Zinc Octate and Phenol, totally weighing 7390 kg valued at Rs. 4,79,276/- (total duty involved Rs. 86,270/-) as compared to the balance in the RG 23A Pt.I Register maintained by the said appellants. On being asked in the presence of the panchas, Shri R.S. Sharma Manager/Authorised Signatory of the appellants Unit stated that the said goods, which were found short, and in respect of which they had taken Modvat credit of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) CCE v. Univsersal Polythylene Inds. [2001 (130) E.L.T. 228 (T)] (iii) Brims Products [2001 (130) E.L.T. 719 (T)] (iv) Sharma Chemicals [2001 (130) E.L.T. 271 (T)] (v) Punjab Fibres Ltd. [2002 (141) E.L.T. 819 (T)]. 3. There was sufficient balance in CENVAT Credit register and there-fore there is no reason for them to remove the inputs without payment of duty. He submitted that the entire demand was barred by limitation since show cause notice was issued on 26-12-2002 whereas the officers have visited on 6-1-1998 and the second statement of the Manager was recorded on 30-9-1998. Ld. Advocate relies upon the following decisions in support of his argument : (i) CCE, Indore v. Prashant Electrode [2006 (196) E.L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a statutory obligation and failure to utilize the goods and failure to account for the same will attract demand for duty and penal consequences. What is required to be proved by the Revenue is that inputs were not accounted for. In this case the Manager s statement has been recorded twice first in January, 1998 and secondly in September, 1998. There is a clear admission of the shortage and non-use of the inputs for manufacture. Further, the statement has not been retracted also. Even though show cause notice was issued after 4 years, the appellants never informed the Department that the goods were available with them. The submission made subsequently was that the inputs got spoiled at the time of manufacture and were available. If the sp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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