TMI Blog2008 (12) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... llants are conducting stock taking on their products periodically and during the course of such stock taking, certain shortages were found in their finished goods as well as raw materials. Based on the same 3 CD reports were filed by them with income tax authorities showing such shortages or excess detected by them, and such shortages of raw materials apparently have been condoned by the Income Tax authorities. Relevant documents were submitted in the form of 3 CD documents. They were issued a show cause notice requiring them to reverse Cenvat credit in respect of raw materials found short and pay duty on the finished goods found short. The appellants have paid the duty on finished goods found short at the time of detection. However, they a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de duty as the shortages and excess have been detected on their own, there is no case for imposition of any penalty. He referred to certain CESTAT decisions in support of his submission :- (1) Vindhya Pipes Plastic Ltd. - 2001 (129) E.L.T. 86 (T) (2) Indian Petrochemicals Corp Ltd. - 2005 (181) E.L.T. 99 (T) (3) National Aluminium Co. Ltd. - 2004 (177) E.L.T. 368 (T) (4) Denso Kirloskar Indus. Pvt. Ltd. - 2006 (195) E.L.T. 102 (T) (5) Neera Enterprises - 1998 (104) E.L.T. 382 (T) (6) Bombay Dyeing Mfg Co. Ltd. - 1998 (97) E.L.T. 101 (T) (7) Metal Fitting (P) Ltd. - 1997 (93) E.L.T. 747 (T) 3. Ld. DR submits that the appellants have been unable to explain the shortages and are only making presu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... off. 6. As regards the finished goods, since ld. Advocate is unable to state whether the shortages were found in the packed goods or tank. I find no reason atleast packed commodity to be found short. Therefore demand of duty in respect of finished goods is upheld which has already been paid by them. However, there is no cause for imposition of penalty as the duty has been paid immediately on their own detection without being asked by Revenue to do so. In nutshell the appeal is partly allowed by holding that no duty is payable on the raw material found short and the entire penalty imposed is set aside. As regards demand of duty in respect of finished goods, I uphold the order of Commissioner (Appeals). (Dictated in Court) - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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