TMI Blog2015 (2) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... 16-8-2007) the contents of the statements of Shri Shree Ram Khandelwal which were recorded after drawing the panchnamas. The Director never retracted his statement nor even allege any threat or inducement. The respondents are bound by the admission made by their Director and could not later on complain that the shortage was not properly arrived at. Even at the time of signing of the panchnama prepared at the spot, the Director of the respondents or any other representative never took exception to the mode of verification adopted by the officers for arriving at the quantity of the goods found short.See COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH Versus NABHA STEELS LTD. [2004 (4) TMI 143 - CESTAT, NEW DELHI ]. It is evident from the foreg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e opening balance as on 16-8-2007. Accordingly, the physical verification of stock of finished goods and raw material available in the factory at the time of aforesaid visit of the officers on 16-8-2007 was conducted separately in respect of each item. In that process quantity of every item was ascertained and compiled into a chart prepared and signed by the authorised representative of the party, Shri Shree Ram Khandelwal, who along with other staff of his factory carried out the whole process of stock taking in the presence of Central Excise Officers. This resulted in detection of shortage of M.S. Ingots and Runners Risers by 87.110 M.T. and 130.00 M.T., respectively. On being questioned regarding reasons for the aforementioned discrepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same and sent to the Department and that they had not done any re-weighment of stock as claimed to have been done on 17-8-2007 and 18-8-2007. Shri Vinod Kumar Yadav, in his statement on 31-8-2007 verified and admitted the contents of the statements dated 16-7-2007 and 24-7-2007 tendered by Shri Shree Ram Khandelwal. Based on the evidences, the primary adjudicating authority confirmed the demand of ₹ 4,93,958/- and appropriated the said amount already paid and imposed a penalty of ₹ 4,93,958/- on M/s. Abhinav Steel Pvt. Ltd. and ₹ 2 lakhs on Shri Vinod Kumar Yadav. 3. The appellants have contended that the panchas of the Panchnama vide their affidavits dated 1-6-2008 have stated that no weighment was done on 16-8-2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (on the date of seizure) and again almost a week after, on 24-8-2007, he again admitted that there was shortage and also added that the representation dated 20-8-2007 made by them claiming that the goods were weighed after the visit of the officers and were found to be correct was untruthful and was sent on the advice of their Excise Consultant and that no such weighment was made. These averments of Shri Shree Ram Khandelwal were duly accepted/ admitted by Shri Vinod Kumar Yadav, Director himself in his statement on 31-8-2007. Thus, even if the retractions of Shri Shree Ram Khandelwal and of the panchas are taken into consideration, the very fact that the Director himself accepted/ admitted to the contents of the statements of Shri Shree Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n [1997 (18) RLT 641 (SC) = 1997 (90) E.L.T. 241 (S.C.)] inter alia held that the burden is on the person retracting the statement to show that it was obtained by thread, inducement, etc. Needless to say in the present case, it is not even alleged by Shri Shree Ram Khandelwal or the two panchas that there was any threat/inducement, etc. In these circumstances, CESTAT also held in the case of K.G. Augustine v. CC [1997 (89) E.L.T. 625 (Tribunal)] that the statements are to be treated as voluntary even if retracted. 6. As stated earlier, Shri Vinod Kumar Yadav, Director, himself admitted the shortage and the entire impugned duty was also paid at the time. When Director himself admitted the shortage in his voluntary statement which was neve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervisor accepting shortage but withdrawn subsequently cannot sustain the case in absence of other evidence, but in the present case the inculpatory statement is of the Director himself which was never retracted. Similarly, regarding the judgement of CESTAT in the case of Shri Nirmaland Steel Casting Pvt Ltd. v. CCE, Raipur [2013 (288) E.L.T. 103 (Tri. - Del.)] holding that the reliance placed upon the sole statement of an employee in the absence of actual weighment is not sufficient to sustain the demand, it is reiterated that in the present case, the inculpatory statement is of the Director himself, which was never retracted nor even an allegation made any threat or inducement. It is seen that the ratio of the judgment in the case of CCE, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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