2011 (7) TMI 339

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....sit to the factory of the appellants on 12.02.97, officers conducted physical verification of stock of finished goods, raw materials and semi finished goods. The appellants are engaged in manufacture of polyester texturised yarn. No discrepancy was found in stock vis-a-v records maintained. However, a study of raw material consumed and finished products cleared after taking into wastage etc., acco....

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....presumptions. He relies upon the decision of the Tribunal in the case of Swati Polyester Vs. CCE Surat reported in 2005 (192) ELT 985 (Tri.-Mumbai) wherein in a similar case of demand of duty on the basis of difference between actual production and assumed production, a view was taken that there cannot be a demand on the basis of theoretical calculation.   3. Learned DR submits that the ch....

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....e Revenue is that appellants had received 12,06,947 Kgs of POY and the yarn oil whereas when total clearances of texturised yarn, rejected yarn, staff in the factory working progress and clearance of waste and also stock of waste are taken into account, the total finished produced output comes to only 11,93,873 Kgs. On this basis the demand for duty was raised and proceedings were initiated. Subse....

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....h is binding on the Single Member Bench. In the case of Swati Polyester also, the duty demand had been made on the unaccounted quantity representing difference between the actual production and assumed production based on theoretical calculation. In the case of Swati Polyester the total quantity of POY and yarn oil was around 15.134 Lakh Kgs whereas clearance was about 14.66 Lakh Kgs. In this case....