2008 (9) TMI 833

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....6-1-1998, a team of Central Excise officers conducted preventive checks in the presence of two independent panchas (witnesses) and Shri R.S. Sharma, Manager Operation/Authorised Signatory of the appellants. During the preventive checks, the Central Excise officers found shortages of various inputs viz. Acetic Acid, Glycerine, Butyl titale Monobier, Zinc Octate and Phenol, totally weighing 7390 kg valued at Rs. 4,79,276/- (total duty involved Rs. 86,270/-) as compared to the balance in the RG 23A Pt.I Register maintained by the said appellants. On being asked in the presence of the panchas, Shri R.S. Sharma Manager/Authorised Signatory of the appellants' Unit stated that the said goods, which were found short, and in respect of which they ha....

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....nbsp;  Durga Trading Co. [2002 (148) E.L.T. 967 (T)] (ii)    CCE v. Univsersal Polythylene Inds. [2001 (130) E.L.T. 228 (T)] (iii)   Brims Products [2001 (130) E.L.T. 719 (T)] (iv)   Sharma Chemicals [2001 (130) E.L.T. 271 (T)] (v)     Punjab Fibres Ltd. [2002 (141) E.L.T. 819 (T)]. 3. There was sufficient balance in CENVAT Credit register and there-fore there is no reason for them to remove the inputs without payment of duty. He submitted that the entire demand was barred by limitation since show cause notice was issued on 26-12-2002 whereas the officers have visited on 6-1-1998 and the second statement of the Manager was recorded on 30-9-1998. Ld. Advocate rel....

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....t, the duty is liable to be paid. There is no need for the Department to prove clandestine removal in such cases since the credit taken has to be reversed if the goods are not used in or in relation to manufacture. This is a statutory obligation and failure to utilize the goods and failure to account for the same will attract demand for duty and penal consequences. What is required to be proved by the Revenue is that inputs were not accounted for. In this case the Manager's statement has been recorded twice first in January, 1998 and secondly in September, 1998. There is a clear admission of the shortage and non-use of the inputs for manufacture. Further, the statement has not been retracted also. Even though show cause notice was issued af....