2005 (10) TMI 326

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....Reddy, SDR, for the Respondent. [Order]. - This is an appeal filed against the Order-in-Appeal No. 111/2003, dated 17-9-2003, passed by the Commissioner of Central Excise (Appeals-II), Bangalore. 2. The appellant availed Modvat credit on inputs. During physical verification, there was some shortage. Hence, the Revenue proceeded against the appellants. The Original authority demanded ....

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....ods. He pointed out that the Order-in-Original and the Order-in-Appeal have traversed beyond the scope of the show cause notice. Further he relied on the following case laws which condone reasonable shortage :- (i)      Hindustan Zinc Ltd. v. CCE, Visak [2004 (172) E.L.T. 244 (Tri. - Bang.)] (ii)     Indian Petrochemicals Corpn. Ltd. v. CCE, Vadod....

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....y). In one case N13 has a shortage but N12 has excess where the reason for the difference is obvious. Total Stock Variance summary is provided in Annexure I for your reference. (c) Additional issues from the stores in place of damaged or defective items, which are considered only at the time of stock taking. At times the replacement is taken by the production without recording the same due....