2013 (11) TMI 1077

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....) JUDGEMENT Per: P.K. Das The applicant is engaged in the manufacture of Plastic containers and availed modvat credit on the Poly Propylene (PP) granules. On 29.11.99, the Central excise officers visited the appellant's factory and conducted stock verification. There was a shortage of 5.6 MTs of PP granules on which modvat credit of Rs. 66,483/- was availed by the appellants. Thereafter, ....

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....e ground that PP granules /scraps cleared to the job worker but not returned. A penalty of Rs. 4,96,269/- was imposed under Rule 57 I (4) read with Section 11 AC of the Central Excise Act, 1944, along with interest. The Commissioner (Appeals) rejected the appeals filed by the appellants. 2. The Ld. Advocate on behalf of the appellants are not disputing the denial of credit of Rs. 66,483/-, whic....

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....ause notice. 3. The Ld. AR submits that the adjudicating authority, after accepting the contention of the appellants, determined the import content at 97.85% and the shortage of 5.6 MTs was detected by the officers and they have also admitted the shortage of 13.57 MTs. He submits that the adjudicating authority after considering the worksheet and the other evidence had determined the unaccounte....

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....any point of time. 5. After hearing both sides and perusal of the records, we find force in the submissions of the Ld. AR. It is seen from the record that there is no dispute in regard to clandestine removal of 5.6 MTs. of PP granules. It is also noticed that the input contents 97.85% in finished goods was ascertained on the basis of the statement of the factory in charge of appellants. The app....