2004 (4) TMI 395

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....he Appellant. Shri S.M. Tata, JDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The appellant is a processor of fabrics. The goods produced by it became liable to duty at compounded rate w.e.f. 16-12-1998. Thus, whatever was the manufactured stock available on 15-12-1998 was required to be cleared on payment of duty according to the normal procedure, i.e. on ad valorem bas....

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....ctly discharged. Appellant's RG 1 register in which daily stock account is recorded, was verified by the Central Excise officer on 15-12-1998. Learned Counsel pointed out that, under Column 16 which covers closing balance in the bonded store room, the quantity entered and verified by the officer (by rounding) was 1,19.449.10 L. Meters and submitted that this was the quantity of finished goods as v....

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....formed part of manufactured of goods. Learned Counsel took us to the entries for the subsequent dates also and explained that the outstanding "loose" stock of 6,47,801.45 L. Meters had been treated as opening balance of the next date (16-12-1998). He submitted that that stock along with fresh issue from Form-IV register (raw materials) was being carried forward for further processing and sale. Lea....

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....ficer on the same day. Same is the figure rounded and certified as checked in the RG-1 register also by the officer. In these circumstances, we are of the opinion that the stock of manufactured goods on 15-12-1998 was required to be accepted as 1,19,449.10 L. Meters only. The claim for duty in respect of additional stock of 6,47,801.45 L. Meters of fabric in loose condition does not seem to be jus....