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of <h1>Court rules in favor of iron & steel manufacturer in stock discrepancy case, citing lack of duty liability.</h1> The court ruled in favor of the appellant, a manufacturer of iron and steel products, in a case involving stock verification discrepancies. The court ... Confiscation of goods - Excess stock of raw material Issues: Stock verification, excess stock of raw materials, confiscation, penalty, statutory time limit for filing appeal.Stock Verification:The appellant, a manufacturer of iron and steel products, underwent a stock verification where discrepancies were found in the raw material stock. The appellant provided explanations for the difference, attributing it to errors in counting and weighment during the stock-taking process.Excess Stock of Raw Materials:The central issue revolved around the excess stock of raw materials found during the verification process. The appellant argued that the excess stock did not attract any duty liability and that there was no intent to evade duty, as the finished goods stock matched the statutory records.Confiscation and Penalty:The Commissioner (Appeals) had imposed confiscation of the excess stock and penalties based on the findings of incorrect stock counting. The appellant contested these actions, emphasizing that there was no duty liability on the excess raw materials and no specific violation of Rule 173Q was demonstrated.Statutory Time Limit for Filing Appeal:The appellant also raised a procedural issue regarding the appeal before the Commissioner, claiming it was not filed within the statutory time limit. This procedural irregularity was a part of the overall contention challenging the confiscation and penalty imposed.In the judgment, it was noted that there was no duty liability on the excess raw materials and no evidence of any clandestine activity to evade duty. The appellant's explanations for the discrepancies in stock were considered plausible, especially as the finished goods stock matched the statutory records. The order was found lacking in specifying the violation of a specific sub-rule of Rule 173Q, further weakening the case for confiscation and penalty. Consequently, the impugned order was set aside, and the appeal was allowed, ruling in favor of the appellant.
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