1996 (4) TMI 304

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....in finished goods as well as raw materials. The production of such tubes was not recorded in the RG 1 Register on 27-6-1994. After making investigations the assessees were issued a show cause notice. After according opportunity for the assessee to be heard, the original authority confirmed demand of Rs. 51,344.45 on the shortages in the finished goods, disallowed Modvat credit of Rs. 94,110.18 on the raw materials found short in stock and imposed a penalty of Rs. 5,000/- on the assessees. Against this order, the assessees filed an appeal. The Collector (Appeals) in his impugned Order set aside the orders confirming the duty demanded and for reversal of modvat credit but maintained orders of penalty. Against this order, Revenue have filed th....

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....here the stock is worked out on average basis. This was established in the judgement of the Tribunal in the case of Nagpal Steels Pvt. Ltd. [1995 (79) E.L.T. 463 (Tribunal)]. Ld. JDR submitted that the Collector had erred in his findings and prayed for restoration of the Original Order. 4. I have carefully considered the submissions of the ld. JDR and have perused the relevant records. 5. It is clear from the submissions of the assessees made both before the Original Authority and the Appellate Authority that they did not possess a weighing balance.The raw materials were coils. Their finished (sic) black pipes (sic) tubes. These goods are generally sold on the weight basis and in the absence of a weighing machine it would ap....