TMI Blog2016 (3) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... t : Shri Rajesh Chibber, Adv For the Respondent : Shri Chatru Singh, Asstt. Commr (AR) ORDER Per Anil Choudhary The appellant, M/s Amba Steels, is a manufacturer of M.S. Ingots and M.S. Bars TMT bar. The appeal is against order in appeal dated 23/02/2010 wherein the order-in-original have been upheld whereby duty for alleged shortage in stock amounting to ₹ 17,05,019/- was confirmed and further penalty was imposed of ₹ 15,31,716/- under Section 11 AC of the Central Excise Act, 1944 read with rule 25 (1) of the Central Excise Rules, 2002 and ₹ 1,73,303/- under section 11 AC read with rule 15 of CCR, 2004. 2. The brief facts are that the inspection was carried on by the office of the revenue which start ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... induction furnace (ingot) and the other for the re-ruling. The appellant manufactures ingots as well as purchased ingots which are used in further manufacture of TMT bars. The manufactured ingots are transferred to the ruling section and there, they get mixed with the purchased ingots. Some part of the manufactured ingots are in hot condition and cannot be handled or accounted. Further, some in the furnace of the rolling mill, which are not visible as manufacturing process requires high-temperature in the rolling mill. It was further contended that the Panchnama is silent as to the manner of verification. The officers of the inspection team had arrived at 5.00 P.M. on 6.9.2007 and they left at 3.30 A.M. on 7.9.2007. Thus it is apparent tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Honourable Allahabad High Court in the case of CCE versus Minakshi Castings: 2011 (274) E.L.T. 180 (All.). The Honourable High Court had upheld the finding of the Tribunal that there is no material or evidence of any kind to support the findings that the assessee had clandestinely removed the goods which did not tally with physical stock. In substance, it was found that there was shortage of finished goods. The shortage of finished goods, by itself would not unless it is related to clandestine removal of finished goods, for which there was no material evidence, infer evasion of Excise duty and that no penalty can be imposed. The ld. Counsel also points out from the statement of facts that neither the revenue at any point of time asked f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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