9911796707
TMI Blog2010 (8) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... f are that the appellants are a manufacturer of corrugated boxes falling under sub-heading 4819 12 00 and they use duty paid kraft paper as inputs. The appellants were availing the benefit of Notification No. 8/2003 for the year 2006-07 and after exhausting the duty-free clearances paid duty and have taken credit of duty paid on the inputs. The appellants opted for the benefit of Notification No. 8/2003 with effect from 1-4-2007. Taking the closing stock of kraft paper as on 31-3-2007 as 1,07,983 Kgs. (OB as on 1-4-06 - 3,54,14 kgs.; Receipt 6,90,759 kgs. and Issue 6,18,191 kgs.) the appellants reversed the credit of Rs. 1,51,224/- on 27-4-2007. The officers of internal audit party visited the unit between 3-10-2007 and 5-10-2007 and found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submits that the tally sheet found by the audit officers was an erroneous document prepared based on incorrect conversion ratios. The department has not sought any clarification from any officers on the said tally sheets. The department has brushed aside the reconciliation statement given by them on 9-11-2007. Therefore, he seeks setting aside the differential duty and the penalty imposed. He also submits that if the quantity of closing balance of kraft paper as adopted by the department is to be accepted, it would mean that the production/clearance figures must be on the lower side. The department has not chosen to verify and rebut the conversion ratios adopted by them in preparing the reconciliation statement and the same has been dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 kgs. as issued in July 2006 and 28,843 Kgs. as issued during the month of November 2006 etc. The claim on behalf of the appellants that they are working out the quantum of kraft paper issued based on final products obtained by them does not deserve to be considered. It is not their case that they are not receiving specific quantity of various varieties of kraft paper from their buyers and the same stands accounted by them correct to a kilogram as receipts in their records. The claim that they were not issuing specific and know quantity for production appears to be an after thought requiring them to work out the quantity issued backwards from the quantity of final products manufactured. I hope that they are not following this method even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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