2006 (3) TMI 364

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....ce the duty paying documents, for which the driver could not do so, hence the officers seized the goods along with truck. On follow up action the factory of the appellant was visited and stock taking was done and the officers found shortage of the finished goods and raw materials, vis-a-vis recorded balance in RG 1. A show cause notice was issued to the appellants for confiscation of the seized goods, and demand of duty on the shortage of the finished goods. The appellant contested the show cause notice. The adjudicating authority, in his order in original confiscated the seized goods and imposed redemption fine, and confirmed the demand on the finished goods found short and also imposed penalty on the appellants. The appellants' appeal to ....

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....eing prepared but was not collected by the driver, must have been prepared later on in order to cover up the clandestine removal. 5. Considered the submissions made by both sides and perused the records. 5.1 As regards the goods seized I find that the appellant's contention that the invoice No. 235, dated 23-5-96 was prepared but the driver of the vehicle had forgotten to collect the duty paying documents seems to correct due to the reason that on perusal of the invoice I find that the invoice was prepared on 23-5-96 at 14.05 Hrs., the vehicle Registration number mentioned is MKJ-8711, which is the same as of the vehicle intercepted and the duty paying documents has Indicated the date and time of removal as 23-5-96 at 2000 H....

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....e appellants shows that the recorded balance of finished goods in RG 1 (M.S. Bars and miss rolls) is 1042.715 M.T. and the physical stock is recorded as 1023.95 M.T. There is no remark on the stock verification report as to how the physical stock verification was conducted. Since there are no weighment records attached to the show cause notice or to the stock verification report, it is to be concluded that the physical stock verification has been done on eye estimation. The appellants have been from the adjudicating stage contesting that eye estimation of such a huge quantity of M.S. bars and miss rolls could lead to error and hence there is no shortage of finished goods. The lower authorities have brushed aside these protest on the ground ....