2010 (5) TMI 374

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....nmachined steel forgings to be 37140 Kgs. and physical stock available was only 19130 Kgs. and thus, the shortage of 18010 Kgs. valued about Rs. 7,20,400/- involving duty of Rs 1,15,264/- was detected. There were also certain private re cords like diary, slip pad, which indicated receipt of various inputs by the appellants. The private records indicated that in respect of certain inputs, though they have received and taken credit and cleared the same as such and they have not reversed the credit involved. There were also instances of taking credit of LDO even after the LDO was made ineligible for credit. These facts came to the knowledge on perusal of private records seized from them. The Original Authority confirmed duty on short found goo....

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....olling Mills v. CCE, Kolkata-II reported in 2005 (186) E.L.T. 326 (Tribunal - Kolkata) and S.MR. Cotton Mills (P) Ltd. v. CCE, Salem reported in 2006 (196) E.L.T. 45 (Tribunal-Chennai) to contend that no conclusion of clandestine removal can be reached merely based on shortage and that too shortage arrived at without actual weighment. 6. Ld. DR submitsthat this is a case of shortage of inputs as well as substantial shortage of finished goods. The statement of the Authorized Signatory admitting the shortage and accepting the manner of stock taking has not been retracted. A bald denial in reply to the show cause notice dated 8-2-2005 cannot be given credence. 7. I have carefully considered the submissions from both the sides and perused....

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....s and the bills received by them without accompanying the goods. The authorities below have accepted their explanation that the bills related to consignment of goods received earlier and accordingly, allowed proportional credit and denied credit only in respect of short received inputs, as per the records. Therefore, disallowance of credit in respect of short found inputs as arrived at from their private records is perfectly justified. The submissions given by the appellants that every entry has not been discussed by the Original Authority does not deserve any consideration. It is not the case of the appellant that the other entries in the Annexure to the show cause notice which were not specifically discussed by the Original Authority fall....