1997 (1) TMI 350

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....and the requisite measurement is done by Depot Measurement Method in the month of February, 1990. As a result of routine-check of stock of Alumina in Silos, the appellants found an excess stock of 168.906 M.T. of Alumina than the recorded balance in their records. This stock was entered by them in their RG-23A Part-I Register with the remarks - "Excess found in physical inventory". However, no corresponding Modvat credit was taken in the RG-23A Part-II Register in respect of this excess found material. Based upon this fact, the applicants were served with a show cause notice raising a demand of duty of Rs. 2,18,940.17 under the provisions of Section 11A of the Central Excises and Salt Act, 1944 read with Rule 9(2) of the Central Excise Rule....

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.... Section 11A read with Rule 9(2) and the same has to be directed to the manufacturer of the raw-materials in question. Alternatively, he takes an argument that if at all the duty liability has to be confirmed on the said inputs, they would become entitled to the Modvat of the same under the provisions of Rule 57E and as such, there would be no loss of revenue. In view of this submission, he pleads for allowing the appeal and setting aside the impugned Orders. 5. Appearing on behalf of the respondent Commissioner, Shri K.K. Biswas, learned SDR reiterates the reasonings adopted by the authorities below and submits that since the inputs in question have been found in excess at the premises of the appellants herein, the reasonable presump....