Appellate Tribunal upholds duty on non-alloy steel ingots despite quantity estimation plea.

The Appellate Tribunal CESTAT, New Delhi upheld the duty payable by the respondents for shortages of non-alloy steel ingots and runners and risers, despite the Commissioner (Appeals) setting aside the duty demand based on the plea that the quantity was estimated, not weighed. The Tribunal emphasized that the Director's admission of shortages during inspection precluded disputing the verification method used. The penalty imposed on the respondents was reduced, and the appeal of the Revenue was accepted, resulting in the duty and reduced penalty being upheld.

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Issues involved: Appeal against order setting aside duty on short found goods with penalty.

The Appellate Tribunal CESTAT, New Delhi heard the appeal filed by the Revenue against the order-in-appeal setting aside the duty on short found goods with penalty. The Tribunal noted that during a visit to the factory premises of the respondents, a shortage of non-alloy steel ingots and runners and risers was detected. The shortages were admitted by the Director of the respondents, and the duty was debited accordingly. The Commissioner (Appeals) set aside the duty demand based on the respondents' plea that the quantity was estimated, not weighed. However, the Tribunal held that the plea could not be accepted as the Director had confessed to the shortages during the inspection. The Tribunal emphasized that the respondents could not later dispute the method of verification used by the officers. Therefore, the Tribunal set aside the order of the Commissioner (Appeals) and upheld the duty payable by the respondents. The penalty imposed on the respondents was reduced from Rs. 25,000 to Rs. 10,000 considering the circumstances. Consequently, the appeal of the Revenue was accepted.

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