2007 (2) TMI 453

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....hey verified the stock of raw material and finished goods. The stock of finished goods were found tallied with R.G. 1 stock ascertained by the officers on physical verification. But, there was shortage of raw material of Alloy Steel to the quantity of 21.692 MT wherein central excise duty involved Rs. 18,091/-. The statement of the Director of the appellant company Shri N.K. Dalal was recorded who admitted the shortage and debited the duty in their RG-23A Part-II/PLA account on 26-12-1997. On scrutiny of the documents, it was noticed that there was a short payment of duty on 7.919 MT of Steel products on the basis of the private document dated 5-9-1997 wherein duty involved Rs. 28,508/- In the adjudication order, the Joint Commissioner of C....

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....emsp;The learned advocate on behalf of the respondent submits that entire demand of duty is barred by limitation. In this case, the shortage was detected on 26-12-1997 and show cause notice was issued on 20-4-2001. He further submits that in this case, there is no suppression of facts with intent to evade payment of duty and, therefore, the demand of duty is absolutely barred by time. He relied upon the following case laws :- 1.   Rivaa Textile Inds. Ltd. v. CCE & C, Surat-I - 2006 (197) E.L.T. 555 (Tri. - Mumbai). 2.      CCE, Indore v. Prashant Electrode - 2006 (196) E.L.T. 297 (T) = 2006 (72) RLT 760 (CESTAT - Del.). 3.      CCE, Trichirapalli v. Ravishankar Industries ....

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....t is pertinent to note that stock of finished goods were found correct on physical verification. Thus, I find force in the submission of the learned D.R. that the respondent cannot take plea in respect of shortage of raw material that the verification was done on eye estimation. In the case of CCE, Indore v. Decora Tubes Ltd. - 2002 (146) E.L.T. 703 (Tri. - Del.), it has been held by the Tribunal that method of weighment being generally prevalent industry and having been accepted by assessee as well, to be considered as correct. The learned advocate submits that the demand of duty is barred by limitation. The case laws cited by the learned advocate are related to the refund of duty and different facts, therefore, the same are inapplicable h....