TaxTMI 
TaxTMI 
2017 (3) TMI 545
X X X X Extracts X X X X
X X X X Extracts X X X X
....onge Iron and other products falling under Chapter 72 of the Central Excise Tariff Act, 1985. The Central Excise Officers of Headquarters (Preventive), Raipur visited the factory of the appellant on 06.05.2008. During the course of verification of goods vis-a-vis the records, the officers found shortage of 246.084 MT of Sponge Iron, 293.966 MT of Bloom Billets, 482.972 MT of Rolled product and 483.363 MT of Ferro Alloys in presence of Shri R.S. Tomar, President (Works), who admitted the shortages and undertook to pay the duty. Later, the Appellant vide letter dated 14.05.2008 of Shri Anant S. Sheth (General Manager of Ferro Alloy Division) disputed the stock taking of Ferro Alloys, stating that the stock taking has not been conducted in pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as also ordered for confiscation of seized cash and its appropriation against the demand. Besides, penalty equivalent to amount of duty was imposed under Section 11AC of the Central Excise Act, 1944. Further, penalty of Rs. 1,00,000/- each was imposed against Appellant No.2 to 5. Hence the present appeals are before this Tribunal. 2. The Ld. Advocate appearing for the Appellants submits that demand cannot be raised merely on basis of shortages, as there is no acceptance by Appellants that the goods found short were removed without payment of duty nor there is any evidence of clandestine removal. It is apparent from Panchnama dated 07.05.2008, the stock verification was carried out on estimation basis. The verification of Stock of Beam, Ang....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... whereas, he was not concerned with the manner of recording of stock. That nowhere he has stated that the goods were removed clandestinely and hence duty cannot be demanded. As regard seizure of cash, he pointed out that the Appellant had produced the cash book and other records annexed to the appeal before the authorities, showing that the cash was recorded in accounts and does not pertain to any proceeds towards clandestine removal of short found goods. He submits that since the shortages has arrived only due to method of accounting of goods by the Appellant and even the physical verification of stock was conducted on estimation basis, it cannot be said that there has been actual shortages. He also submits that Shri Deepak Gupta in his st....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntained properly and that the Appellant has no option to adopt the recording of production on sectional weight basis and removals on actual. Even if such a method has been adopted, the Appellant cannot disown the difference arrived at on actual physical weighment method, which was also agreed to be satisfactory during proceedings. Therefore, the duty demand is correctly made on shortages. As regard cash, he has ordered confiscation on the ground that in view of preponderance of evidence regarding indulgence of Appellant in un-accounted manufacture and removal of goods, the seized cash is sale proceed of goods so removed and hence ordered for confiscation to be appropriated against demand. 7. We find from the records of the case and the wri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted to clandestine removal of finished goods, for which there was no material evidence, inferring evasion of excise duty. Further, same analogy has been adopted by Hon'ble High Court of Punjab & Haryana in case of CCE. & S.T., Ludhiana -Vs.- Anand Founders & Engineers (supra). We further find that demand cannot be made only on the ground of acceptance of shortage by Shri R.S Tomar, as he has nowhere stated that the shortages has arisen due to clandestine removal of goods. It is more so, in case where the quantity of finished goods were being recorded on estimation basis and even the officers during physical verification, adopted the same method. From the statement of Shri Deepak Gupta, Joint Managing Director, it is seen that he refused to ....