2006 (3) TMI 419

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.... visited the factory premises of the appellants, on 10-1-96 and authority found finished goods 25.389 M.T. of steel ingots short. The officers again visited the appellants' factory premises again found 50.0 M.T. of MS ingots physically against the recorded balance of 402.389 M.T. of ingots in RG-I. Hence total shortage of 352.389 was registered and a show cause notice was issued to the appellants demanding the duty on such short found finished goods and penalty was sought to be imposed. The adjudicating authority confirmed the demand and also imposed penalty on the appellants. On an appeal, the Commissioner (Appeals) allowed the appeal of the appellant by way of remand, directing the adjudicating authority to consider the case afresh. The a....

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.... by the representatives of the appellant, in their statements, which were recorded on separates dates. Having given them ample opportunity to explain the shortage, the appellant have failed and hence there is no reason to interfere in the order-in-appeal. He further submits that the adjudication is done by the proper authority despite the fact that the SCN is issued by the Superintendent of Central Excise. For this proposition, he relies upon the case law of Pahwa Chemicals Pvt. Ltd. v. CCE, Delhi - 2005 (181) E.L.T. 339 (S.C.). 5. Considered the submissions made by both sides and perused the records. I find from the records that the show cause notice is indeed issued by the Superintendent (Preventive) of Central Excise, Varanasi Di....

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....ted the Assistant Commissioner as proper officer for the purposes of the Rule 9(2) of Central Excise Rules, 1944. It is to be noted that, the written demand as envisaged in the said Rule 9(2), would mean the confirmed demand. It cannot be equated to a show cause notice, as show cause notice, as in itself is a 'show cause notice' and not a demand. A show cause to a manufacturer only alleges the violations of the provisions of the Act and Rules made thereunder and directs the manufacturer or producer to defend the allegations. The mere issue of the SCN in itself will not constitute that it is confirmed demand under Central Excise provisions, it merely indicates that an specified amount is recoverable from the noticee. Subsequent adjudication ....