2013 (5) TMI 572

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....e second time the litigation has come up to CESTAT. The short issue involved in this appeal is that during the course of physical verification of the appellant's stock on 16.11.95 the officers found shortage in stock of raw materials. A show cause notice was issued and confirmed by the adjudicating authority and appeal filed by the appellants was remanded by Commissioner (Appeals) under OIA No.NS/....

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....ss of 5% and handling loss of 2% during the process of manufacture. Appellant emphasised the reasoning given in the stay order to highlight that appellant has discharged their initial burden and department should have conducted further investigations to verify the claim of losses made by the appellant before the investigation. Regarding penalty it was argued that the case pertains to the period 16....

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....is issue is under litigation right from 1995 and the main aspect of shortages has not been addressed so far. The claim of the appellant is that actually there are no shortages in the raw material due to the processing losses. Appellants have relied upon the reasoning given in the stay order dated 11.05.12 in this case. However, it may be mentioned that the reasoning given in the stay order was onl....

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....ing cenvat credit and interest are required to be confirmed. To that extent the order in appeal is required to be upheld. So far imposition of penalty under Section 11AC of the Central Excise Act, 1944 is concerned it is observed that this Section was introduced in the Act w.e.f. 28.09.96 which is after the offence being committed in 1995. Therefore I hold that penalty under Section 11AC is not at....