2002 (9) TMI 525

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.... an equal amount and imposed a penalty of Rs. 5 lakhs on Shri N.K. Jain, General Manager. 3. The facts of the case briefly stated are that M/s. M.P. Iron & Steel Co. are engaged in the manufacture of excisable goods i.e. wire rods, rounds, etc. The Officers of Central Excise visited the factory premises of the appellant and carried out a physical verification of the stock of raw material and finished goods. On verification it was found that the actual stock of Billets and Blooms was less than the quantity shown in the RG.I register. Statement of Shri Pushpak Bansal, Dy. Manager was recorded. He deposed that he was unable to explain the shortage in stock of Billets and Blooms. Statement of Shri N.K. Jain was also recorded wherein he st....

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.... rods/rounds comes to 74.24 M.Ts. Thus 290 kgs. is the grinding loss which is generated in the form of waste and scrap. Ld. Counsel submits that the waste and scrap is cleared on payment of duty. Ld. Counsel referring to the Technical Literature "The Making, Shaping and Treating of Steel" submits that for manufacture of wire rods/rounds grinding is necessary. He submits that grinding is sometimes undertaken for removing defects from semi-finished steel. 5. Ld. Counsel submits that there was no clandestine removal; that clandestine removal has been alleged only on the ground that there was a difference in the weight of billets and blooms when compared with wire rods. It was submitted by the ld. Counsel that Commissioner has relied on t....