TMI Blog2017 (12) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... n, there is bound to be discrepancies - So far as stock of finished HR strips is concerned, the difference is of 33 MT against the recorded balance of 126.440 MT. Thus, there is difference of little more than 20%. I hold that in the case of eye estimation, which is admittedly the case, such variation and/or excess quantity computed does not lead to any adverse inference against the assessee. Further, as per the facts on record, there is no attempt by the appellant-assessee to remove the goods clandestinely. Admittedly, the finished goods were lying inside the factory. Appeal allowed - decided in favor of appellant. - Excise Appeal No.54036 of 2014 - A/58114/2017-SM[BR] - Dated:- 16-10-2017 - Shri Anil Choudhary, Member (Judicial) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lets valued at ₹ 7,75,192/- and 33.027 MT of H.R. Strips (Finished goods) valued at ₹ 11,88,972/- were found in excess than the stock declared by the on 24.12.2011. The details of which is tabulated below: Raw material Description Raw material as per Declaration dated 24.12.2011 Raw material ascertained during physical stock verification Difference/unaccounted raw material found in the premises of appellant 1 2 3 4 Billets 205.510 MT 229.964MT 24.454 MT (Excess) Finished goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction and removal of finished goods as under: i) The purchased quantity received in the factory are recorded on actual weighment basis. ii) The raw material is issued for production from Form IV on the basis of estimated quantity. iii) The manufactured quantity i.e. finished goods, scrap and burning losses arises from consumption of raw-material is also recorded in Form IV register on the basis of estimation as per sectional weight: iv) The clearance of finished goods from the factory is recorded on actual weighment basis. 6. The learned Commissioner (Appeals) found that the said practice is prevalent in the industry. The actual weighment is taken only at two stages, first at the time of receipt of raw materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He have held that confiscation of the finished goods which were released on payment of redemption fine of Rs.one lakh. Further, penalty under Rule 25 was reduced ₹ 50,000/-. 7. Being aggrieved, the appellant-assessee is before this Tribunal. The learned counsel for the appellant urges that it was held by the Hon'ble Delhi High Court in the case of CCE, Delhi II vs. Ganpati Rollings Private Ltd [2016 (338) ELT 587], wherein in the case of non-accountal of goods in statutory records, it was held that there is no question of contravention of Rule 15 of Cenvat Credit Rules, 2004 as the appellant had not taken Cenvat credit. Further, as the show cause notice was not made with reference to Section 11 AC of the Act. Whereas rule 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 126.440 MT. Thus, there is difference of little more than 20%. I hold that in the case of eye estimation, which is admittedly the case, such variation and/or excess quantity computed does not lead to any adverse inference against the assessee. Further, as per the facts on record, there is no attempt by the appellant-assessee to remove the goods clandestinely. Admittedly, the finished goods were lying inside the factory. Thus, I hold that under the facts and circumstances, no adverse inference is called for. I further find that the allegations made in the show cause notice are vague and presumptive. Accordingly, I set aside the confiscation/ detention of the finished goods, as well as the penalty imposed by the learned Commissioner (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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