TaxTMI 
TaxTMI 
2003 (2) TMI 304
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....f Rs. 1 lakh under Rule 173Q of the Rules. 2. The respondents are engaged in the manufacture of Electric Bulbs, Tube-Lights and Auto-Halogen Lamps. On scrutiny of the balance sheet of the respondents' company for the financial year 1995-96 and 1996-97 in respect of all these products, shortage of 54,601 auto-halogen lamps was detected for the period 1995-96, while for the period 1996-97, the shortage found was of 1,08,510 lamps. Accordingly, show cause notice was served on the appellants vide which duty demand on the finished goods found short was raised and penalty was also proposed to be imposed on them. The respondents contested the correctness of the show cause notice by alleging that the balance sheet was only a commercial accoun....
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....sional statement of the authorized signatory of the respondents admitting the shortage of the finished goods. True that the respondents deserved allowance for the breakage of the capsules as well as in respect of the defective capsules, but to what extent, was to be explained by them and not by the Department. Moreover, the findings of the adjudicating authority that the breakage stage was prior to the accounting of the finished products and had nothing to do with the shortage of the final products found in the factory premises of the respondents deserves to be accepted. It was for the respondents to explain the shortage and the circumstances under which the balance sheet was prepared b....
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....ules. Here again he failed to record any reasons. In fact, no cogent and convincing reasons have been recorded by the Commissioner (Appeals) in his entire impugned order for reversing the order-in-original of the adjudicating authority which is quite detailed one and each and every aspect of the case and the pleas of the respondents had been dealt with at length. 6. From the entries made in the balance sheet which did not tally with that of statutory record and the statement of the representative of the respondents, it is evident that they themselves admitted the shortage of the finished goods in question. The Commissioner (Appeals), in my view, had grievously erred in absolving the respondents of their duty and penalty liability. Fro....