TaxTMI 
TaxTMI 
1999 (12) TMI 161
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....e impugned order. 3. The case of the Department is that on verification of stock by Officers of Central Excise on 18-5-1995 of finished goods, certain shortages and excesses were found. This was reflected in the Panchnama prepared after verification and to which the appellants' representative had subscribed to by putting his signature as token of acceptance of the figures shown in the Panchnama. 4.  The appellants on the other hand contend that having regard to the huge volume of the finished goods (cold rolled steel sheets and coils) which ran into thousands of tonnes, actual stock verification was made by the Officers on assumption basis. The discrepancy alleged in the stock records maintained by the appellants was the res....
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....ghts shown on the slip pasted on the coils/bundles. It had further stated that the verification showed certain shortages in respect of some varieties of the finished goods while excesses quantities were found in respect of some other variety, which had been tabulated in the SCN. The appellants had in reply to the SCN explained the reasons for the alleged shortages/excesses and contended that the difference if any on net average basis would be very negligible (below one percent) which was not abnormal in the steel industry where accepted tolerance was around four to five percent, plus or minus. Further, on the date of verification of stock, the total stock available with the appellants was around 7,465 M.Ts. It was not possible for the Offic....
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....ods was found to be not acceptable and benefit of doubt was given to the assessee. 7. Defending the order, ld. JDR, Shri Y.R. Kilania submitted that the appellants themselves have admitted to the shortages/excesses found at the time of verification of stocks by the Departmental Officers on the day of their visit to the appellants' factory. Appellants had also subscribed to the Panchnama prepared thereafter showing shortages and surplus of finished products. If the appellants had any misgivings about the method adopted for verification of stocks, it was upto them to point out the lapses or discrepancy at that time. Having failed to do so, the stand subsequently taken by the appellants in raising doubts about the process of verificati....
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....nd unaccounted. The Commissioner (Appeals) has thus on the one hand expressed doubts about the correctness of the method adopted by the Officers for arriving at the excesses/shortages and on that basis given the appellants the benefit of doubt as far as penalty and confiscation of goods are concerned. On the other hand, on the same set of facts he has sought to confirm the duty demand merely for the reason that the appellants have subscribed to the panchnama showing excesses/shortages. To this extent I agree with the appellants' plea that there is a contradiction in the view taken by the Commissioner (Appeals). Once the Commissioner had taken the view that the method of verification adopted by the Officers was not free from doubt and confis....