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TMI Blog2007 (8) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in the manufacture of blended iron steel slabs (alloys), steel rounds (alloy and non-alloy) etc. When the Central Excise Officers visited the factory premises of the respondent on 28-6-2002, it was found on physical verification of the finished goods under a panchnama that they were short in comparison to the recorded finished goods. It was also noticed that the finished goods had been used in the factory for other purposes. Steel slabs, after being welded with small vertical pieces of steel strips, were used in the workshop as welding platform. Steel slabs (non-alloys) were being used in SMS section for protection from fire. Steel rounds (alloys) were being used as the base support for keeping on it hot slabs in the casting section fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was held that, excise duty was payable in respect of steel rounds (alloys). The authority took note of the clearances made under invoice dated 28-6-2002 and worked out the shortage of steel rounds as 53.82 MT. 4. The Appellate Commissioner after re-appreciating the evidence on record came to a finding that there were no shortages because the quantity of 108 MT was explained. It was held that, merely because the slabs were temporarily taken to the workshop in the factory premises itself to facilitate packing of some machinery and one or two strips were vertically welded, the character of the steel slabs did not change and they could not be said to have been put to use so as to change their character and identity. The Commissioner (Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued that Sangemermer India Pvt. Ltd. (supra), stood on a different footing because, it related to uneven marble slabs. In support of his submissions he relied uron the following decisions :- (a) The decision of the Tribunal CCE. Indore v. Agya Auto Ltd. reported in 2004 (166) E.L.T. 177, was cited to point that when the goods were not accounted for in the statutory record, they were liable to be confiscated. (b) The decision of the Tribunal in CCE, Meerut v. Rishabh Velveleen (P) Ltd. reported in 2006 (201) E.L.T. 437, was cited for the proposition, in paragraph 12 of the judgment, that mathematical precision was not required for giving evidence of each entry for which the show cause notice was issued for demanding duty. (c) The decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the decision of the Tribunal in Sangemermer India Pvt. Ltd was summarily dismissed 6.1 In support of her submissions, she also relied upon the following decisions : (a) The decision of the Tribunal in Commissioner of Customs & Central Excise, Raipur v. Bhilai Structurals reported in 2007 (213) E.L.T. 387, was cited to point out from para 2 of the order that, the Tribunal keeping in view the scope of genuine variation of PMSS which was within the prescribed tolerance limit (IS 1852-1985- which was between 3% to 7% in respect of weight of rounds and bars) held that, the confiscation of the goods was rightly held to be not warranted. (b) The decision of the Tribunal CCE, Indore v. Him Techno Forge Ltd., reported in 2007 (213) E.LT. 24 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the assessee praying for dismissal of the appeal of the Revenue. These were read out as a part of the arguments, by the learned Counsel for the respondent, 8. On going through the record and the reasoning adopted by the authorities below in the light of the contentions raised by both the sides and the decisions cited by them, it is clear that the respondent had explained the so called shortages in a manner that impressed the Commissioner (Appeals). The officers during their visit itself were shown the stock of 80 MT and 49.400 MT and 19.569 MT of steel found (alloy) during the stock taking. It is nobody's case that the goods were removed from the factory premises. Some steel slabs weighing 80 MT were temporarily placed in the work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te variation in the weight of the slabs For example, the commercial invoice No 83001905 dated 28-6-2002 showed the total quantity of one steel slabs (non-alloy) JSP 355X2Y1 as 11.970 MT, while the total quantity, i.e., weight of slab of identical description was shown to be 12.160 MT in the commercial invoice No. 83001904 of the same date Therefore, when the finished goods, which were pointed out to the visiting officers lying in the factory premises are taken into consideration, the remaining shortage, which was of nominal nature, would also stand explained by virtue of the variations in the weight of slabs of identical description Since the method adopted for measuring the quantity proceeded on the footing that the slabs of identical desc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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