Stock verification by average weight accepted on facts after admission and lack of satisfactory explanation for excess stock.

Stock verification based on average weight was examined on the facts, with the central question being whether the assessee's method of weighment could be treated as normal industry practice. The record showed no specific or satisfactory explanation for the excess stock, and the authorised representative had accepted the stock-taking method in a statement recorded under Section 14 of the Central Excise Act, 1944. In light of that admission and the undisputed factual position, the earlier appellate view was found unsustainable. The stock verification on average weight was accepted, the impugned order was set aside, and the Revenue's appeal was allowed.

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Issues: Whether stock verification based on average weight was acceptable in the facts of the case.

Analysis: The only substantive question was whether the method of weighment adopted by the assessee could be accepted as a normal industry practice. The record showed that the authorised representative had not given any specific and satisfactory explanation for the excess stock and had accepted the manner of stock taking in the statement recorded under Section 14 of the Central Excise Act, 1944. In view of this admission and the undisputed factual position, the earlier appellate finding was held to be unsustainable.

Conclusion: The stock verification on the basis of average weight was accepted on the facts, the impugned order was set aside, and the Revenue's appeal was allowed.

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