TaxTMI 
TaxTMI 
2013 (11) TMI 990
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....e stock of various Cenvat credit availed inputs as well as final products was taken. Among other irregularities, one irregularity noticed was that while as per the appellant's record, the stock of Ferro Silicon Lumps/Ferro Manganese was supposed to be 113.89 M.T., on physical verification only the stock of 8.88 M.T. of Ferro Silicon Lumps/Ferro Manganese was found and as such there was shortage of 105.01 M.T. of this material. This stock taking had been done in presence of Shri Mahesh Kumar Sharma, Authorised Signatory of the appellant and on inquiry being made with him, he in his statement recorded on that day, while admitting the shortage of 105.01 M.T. of Ferro Silicon Lumps/Ferro Manganese, stated that the said goods are covered by four....
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....alty of Rs. 2,00,000/- under Rule 25 (1) of Central Excise Rules, 2002. Against this order of the Commissioner (Appeals), this appeal has been filed. 2. Heard both the sides. 3. Shri R. Santhanam, Advocate, the learned Counsel for the appellant, pleaded that though at the time of stock taking, as against the stock of 113.890 M.T. of Ferro Silicon Lumps/Ferro Manganese, only 8.88 M.T. of this material had been found, the appellant subsequently vide their letter dated 28/12/07 addressed to the Department had stated that the missing material was available in the factory and, as such, there was no shortage, that Shri Mahesh Kumar Sharma, Authorised Signatory in whose presence the stock had been checked, was not looking after the procureme....
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....this factory since 2001 was present and he had clearly accepted the shortage, that not only this, in his statement recorded on the same day he has stated that Cenvat credit in respect of the goods found short had been taken on the basis of invoices issued by four suppliers and in respect of those invoices there was no supply of any goods and it was the appellant's mistake that they have taken this Cenvat credit on the basis of invoices under which no goods had been received, that if the missing Ferro Silicon Lumps/Ferro Manganese was available in the factory, the appellant should not have taken 16 days to locate the same, that in this background, the retraction of statement by Shri Mahesh Kumar Sharma has no meaning, and that this is a clea....
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....l Excise officers conducted the stock checking in presence of Mahesh Kumar Sharma, the Authorized Signatory of the appellant. Shri Sharma was working in this factory since 2001 and was looking after Central Excise matters. It is not disputed that at that time, Shri Sharma signed the stock verification report and not only this, he in his statement recorded under Section 14 of Central Excise Act admitted the shortage and also stated that the goods found short are covered by invoices issued by four suppliers and that the Cenvat credit, in question, had been taken on the basis of those invoices of four suppliers but no good had been received under these invoices while Cenvat credit had been taken. He also agreed to pay back the Cenvat credit wr....