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TMI Blog2013 (9) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... Mumbai on 8.12.2007.In course of search of a number of incriminating documents were recovered. 1.2 In course of search of the factory premises, Shri Vijay Hardiya, Excise Asstt. of the appellant company, who was present at that time, on being asked stated that while the factory of the appellant company is an integrated steel plant manufacturing mild steel and stainless steel plates and slabs, they are also getting the Mild steel and stainless steel slabs, converted into plates on job work basis from M/s. Bhanu Iron and Steel Com. Ltd.. The officers took stock of the finished products lying in the factory. The weight of the goods was determined as per the standard norms of length, width, thickness and density of the products i.e. by adopting the same criteria on the basis of which the quantity of the goods manufactured was being mentioned in the stock register. In course of stock taking while excess vis-a-vis balance in the RG-I register to the extent of 33.595 M.T. and 84.832 M.T. in respect of S.S. Slabs and plates respectively was found, in respect of M.S. Slabs as .S. Plates, there was shortage to the tune of 15.425 and 91.997 M.T. respectively and the duty involved on the sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeared that the appellant company had taken wrong cenvat credit amounting to Rs.6,28,59,281/- out of which the cenvat credit of Rs.2,17,31,793/- and Rs.50,90,247/- was reversed during investigation. 1.6 On comparison of the quantity of the raw materials, M.S. Steel and Stainless Steel slabs sent to job workers and the quantity of finished goods which was received back, it appeared that substantial quantity has not been received back and same appeared to have been illicitly cleared. The total duty involved on this quantity of finished goods appeared to be Rs.5,68,7,130/- (Rs.75,02,642/- + Rs.4,93,04,488/-). 1.7 In view of the above investigation, a show cause notice dated 7.5.2009 was issued to the appellant company, Shri Vijay Soni, Director of the appellant company and Shri Manohar Singh Rana, the Authorized Signatory of the appellant company for (a) Confirmation of total duty demand as well as cenvat credit demand of Rs.15,22,72,338/- (Rs.39,40,559/- + Rs.95,48,586/-+Rs.1,91,16,562/- +Rs.6,28,59,281/- + Rs.75,02,642/- + Rs.4,93,04,488/-) along with interest thereon against the appellant company under proviso to Section 11A(1) of Central Excise Act, 1944 along with interest th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of the goods imported under DFIA and credit of Rs.50,90,247/- which was taken twice by mistake, has already been reversed, that the allegation of taking wrong cenvat credit of Rs.3,60,37,241/- in respect of the quantity which had not been received, the appellant are not in a position to make any defence submission, as the relied upon documents have not been submitted to them and as per the appellant, this credit has correctly taken by them and as such there was no short receipt, that as regards the duty demand of Rs.4,93,04,488/- and Rs.75,02,642/- in respect of the goods alleged to have been cleared without payment of duty, this demand is in respect of the goods manufactured on job work basis, that the demand has been raised on the basis of difference between the quantity of M.S. Slabs sent for job work as per the job work register and the quantity of the resultant product received back after job work and entered in RG-I Register, that this is wrong, as the comparison should be between the quantity of the clearances as recorded in the RG-I Register and the quantity of the clearances as per record of the dispatches and the difference between quantity shown to have been cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in respect of the goods sold though consignment agent's premises. Since in terms of the provisions of Section 4 of the Central Excise Act, 1944 read with the Central Excise Valuation Rules, 2000, in case the goods are cleared to consignment agents premises from where the same are sold, it is the consignment agent's premises which is to be treated as the 'place of removal' and accordingly, the assessable value would the price of the goods from the consignment agent's premises at the time of record, which would include all the expenses incurred upto the consignment agents premises including the transportation expenses incurred upto that point. In this case, prima facie, the duty has not been paid on the price at the consignment agent premises and as such, the duty demand on this count appears to be on strong footing. 5.3 As regards the duty demand of Rs.1,91,16,562/-, this is the difference between the cenvat credit actually availed in respect of the imported Mild Steel Slabs and H. R. Coils, which had been cleared as such and the amount actually paid at the time of clearance which is the duty on the transaction value. Since in respect of the clearance of the cenvated items as s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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