TMI Blog2017 (11) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... ry is also not disputed and clandestine removal is not alleged by the department - appeal dismissed - decided against Revenue. - E/86314/17 E/CO/91113/17 - A/90676-90677/17-SMB - Dated:- 6-11-2017 - Shri Ashok Jindal, Member (Judicial) Shri D.S. Chauhan, AC (AR) for Appellant Shri Rajesh Ostwal, Advocate for Respondent ORDER Per: Shri Ashok Jindal Revenue is in appeal against the impugned order. The respondent has also filed cross-objection. 2. The brief facts of the case are that during the course of audit, a physical inventory variable report as on 31.3.2013 showing location book quantity, physical quantity, difference and its value was submitted by the appellant. On physical verification, certain quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hortages have admittedly arisen are negligible. The value of the shortages in raw material and stores spares is of ₹ 89.89 lakhs approximately this would amount to a meager 00.35% of the value of the raw material and bought out components i.e. stores and spares. The shortages and excesses arc a necessary consequence of handling large quantities of material and the engagement of numerous personnel in handling the same. The shortages and excesses are nothing more than accounting errors and other inevitable human error. The said variance is arrived at by comparing the physical stock of material with the book stock of the material. The said variance in material occurs due to error in booking movement of the goods during the process of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds. A number of persons handling and accounting these goods through various stages, performing different functions. Approximation while counting most of the components as 100% counting of large nos., of components is practically not possible. Approximation in the measurement of steel tubes and bars while issuing and taking physical inventory. Approximation due to procurement of Steel bar by weight and issue of the same by length by converting the length of the steel bars into weight, based on an estimated (ideal) weigh/mass per meter length. Short recording of shop rejection of components in SAP by production personnel in the zeal to show better efficiency to management resulting in shortages at the time of ph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89,88,792 16. I find from the table above it is apparent that there is shortages of material valued at ₹ 89.89 lakhs as compared to the purchase of Raw material valued at ₹ 25731/- Iakhs, as shown by the appellant in their P L account is just 00.35%. The Hon ble Tribunal has allowed the difference in inputs in the case of M/S Hindustan Zinc Vs CCE (2004) 172 ELT 244 to the extent of 1% - 1.5%; in the case of M/S Deriso Kirloskar Ind. Vs CCE (2006) 195 EL ..... X X X X Extracts X X X X X X X X Extracts X X X X
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