TaxTMI 
TaxTMI 
TaxTMI 
2011 (9) TMI 554
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....have informed that for recording production in their records the weighment of manufactured rolled products of iron & steel is taken on sectional weight method basis and accordingly stock of manufactured goods so arrived at is entered in their records. Based on intelligence, the officers of the department had visited their unit and they have taken the stock of rolled products and raw material i.e. M.S. ingots on actual weighment basis on weigh bridge. On actual weighment, it was found that there is shortage of 10.465 M.T and 7.490 M.T. of flat bars and round bars respectively and there is excess stock of waste and scrap weighing 15.004 M.T. The appellants had admitted the said facts of shortage and excess in their statement....
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....e of finished product found short is less than one percent which may be attributable to error in weighing method or weighing bridges. He further contended that since the raw material found tallied with that of recorded balance in statutory records, there cannot be a case of clandestine removal of the goods. As regards the waste and scrap found excess at the time of stock verification, he submitted that the general practice of recording the stock of waste and scrap in Daily Stock Account is on eye estimation and actual weighment of stock is recorded only at the time of sale. Therefore, there is a possibility of error in estimating the stock. There is no allegation against them that the appellants were attempting to remove the waste and....
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....ase. 4. The ld. D.C.A.R. appearing for the Revenue reiterated the findings of the lower authorities and submitted that since the appellants were involved in evasion of duty, the lower authorities have rightly confiscated the goods and imposed fine and penalty. 5. After hearing both sides, I find that on a visit to the factory by the departmental officers, they found shortage of finished excisable goods and excess stock of waste and scrap lying in their factory not accounted for in the daily account register. The procedure of weighment was carried out in the presence of Executive Director of the appellants and proceedings were accepted by them under their statement recorded under Sec.14 of ....