TaxTMI 
TaxTMI 
1997 (9) TMI 284
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....g in the factory. He has observed that the method of stock taking adopted at the spot was signed by the party as well as Panchas. The M.D. of the company also did not contest this in his statement recorded on the same day. He has observed that to argue such points at this belated stage when the goods are already fixed up may not serve any useful purpose. Therefore, on this short reasoning, without due consideration of the various submissions and case law, the learned Commissioner has ordered for confiscation of excess goods valued at Rs. 2,13,226.24 and has given an option to redeem it on a fine of Rs. 10,000/-. He has held that since there is no clandestine removal of goods has been proved by the department, therefore, he has reduced the p....
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....o the Panchnama dated 25-1-1995. 3. It was further alleged that on physical verification of input (on which Modvat credit was availed), a quantity of 1,365.461 M.T. of Ingots/Billets/Blooms was found against the recorded balance of 1,471.133 M.T. in the RG 23 Part I register. Chart of stock taking of input prepared on the spot is appended as Annexure `B' to the Panchnama. Thus it was alleged that 105.672 M.T. of Ingots/Billets/Blooms valued at Rs. 10,47,737.88 involving credit of duty (@ 15% adv.) amounting to Rs. 1,57,160.68 were found short vis-a-vis recorded balance in statutory record. The charge sheet was framed on the basis of issue of show cause notice calling upon them to explain as to why the penalty proceedings besides duty ....
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....contended that the average weight and length was taken into account and 65.280 M.T. of inputs lying in the furnace was not taken into account by the officers. In this regard, he has held that in the Annexure 'B' of the Panchnama i.e. for stock-taking report of inputs, it is clearly mentioned that Director and witnesses were agreed upon the basis of calculation of stock-taking. Therefore, he rejected their plea. In sum, the Additional Commissioner has merely rejected all the pleas without proper discussion and scrutiny of the records nor statements nor annexures and merely held that there is an admission in stock-taking and hence that by itself is ground to reject. It is necessary to point out that the Additional Commissioner was required to....
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....of the pieces were not identical and weight has been shown to be same, although there is a lot of discrepancy. It is his contention that the department ought to have weight the pieces and arrived at the correct weight. It was also pointed out that in one case, they had accepted their plea and dropped the proceedings. It was also pointed out that the department again for subsequent period, again visited the factory and again carried out the similar process of search. During that period, the appellants insisted on the weighment of the entire lots and on adoptation of the correct method, the department was satisfied that there was neither excess or shortage and on that ground dropped the proceedings. It was also pointed out that having come to....