TaxTMI 
TaxTMI 
2013 (12) TMI 391
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....eel wire rods. The jurisdictional Central Excise officers visited the respondent's factory on 03/8/04 and at that time checked the stock of inputs and finished goods and it was found that RG-23A register in respect of receipt of inputs was completed upto date upto 31st July, 2004 and between this date and the date of visit, there was no receipt of steel wire rods. The recorded balance of input in the RG-23A register at that time was 115502 kgs. However on physical verification, only the stock of 29,578 kgs. was found. The officers were of the view that there was shortage of 85924 kg. in respect of which the Cenvat credit involved was Rs.5,15,544/-. The respondent at that time pointed out that this is not real shortage, as the entries regard....
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.... vide final order No.1602/2008-SM dated 08/12/08 remanded the matter to the original Adjudicating Authority for denovo decision after updating RG 23A register regarding the receipt and issue entries and then determine whether there was shortage of cenvated raw material or not. 1.3 The matter was adjudicated denovo by the Additional Commissioner vide order-in-original dated 3/2/2010 by which he again confirmed the same demand alongwith interest and imposed penalty of Rs.3,00,000/- on the respondent on the ground that the documents regarding consumption of raw material during the period from 30th June 2004 to 31st July 2004 are manipulated documents and no reliance can be placed on the same. However, on appeal being filed by the respondent....
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....ing Authority, that when the fact of production of finished product during July 2004 is not disputed, and for manufacture of finished product, some quantity of raw material must have been used, the department cannot alleged that there was clandestine removal of Cenvat credit availed raw material without payment of duty. He pleaded that in the denovo proceedings the department has not carried out the Tribunal's directions and, as such, there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. 6. There is no dispute about the fact that at the time of the officer's visit to the respondent's factory, in the RG-23A register, while entries regarding receipt of raw material....
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.... material actually found in that day and the entries regarding the issue of raw material had been made only upto 30th June 2004, for determining the shortage of inputs, if any, the figure regarding the quantity of raw material consumed should have been updated after taking into account the quantity of raw material consumed during the month of July 2004 and without doing this, the question of shortage or excess cannot be determined. Though an opportunity was given to the department to rectify this mistake, this has not been done. The department has neither accepted the figures of consumption of raw material during July 2004 as given by the respondent nor has made any effort to ascertain the quantity of inputs consumed on the basis of product....