2014 (11) TMI 779

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....riginal Nos. 2 to 4/03-04 (RP), dated 30-4-2003 and Order-in-Original No. 20/99-ASR, dated 18-10-1999 of the Commissioner of Central Excise and Customs, Visakhapatnam-I Commissionerate, Port Area, Visakhapatnam. 2. The respondent is a company manufacturing zinc ingots, lead ingots, sulphuric acid, cadmium etc. It receives zinc concentrate and lead concentrate from different sources. On 6-8-1996, it filed declaration under Rule 57G of the Central Excise Rules, 1944 to avail Modvat credit of duty paid on zinc concentrates and lead concentrates and thereafter it was availing credit under Rule 57AA on the inputs zinc/lead concentrates. 3. The Revenue officials allegedly noticed shortage of Zinc/Lead concentrates when compared to....

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.... of input noticed at the time of physical verification of stocks to the department and thus suppressed information; by suppressing the information, it had utilized the Modvat credit irregularly and intentionally evaded payment of duty. 4. By invoking the extended period of limitation of time-limit beyond one year, four show cause notices were issued to the respondent assessee during the period between 1996-97 to 2000-2001 for recovery of an amount of Rs. 62,28,024/- towards recovery of Modvat credit irregularly availed. 5. After receiving the reply of the respondent, Orders-in-Original Nos. 20/1999-ASR, dated 18-10-1999 and 2 to 4/03-04 (RP), dated 30-4-2003 were passed by the appellant confirming the levy of duty of Rs. 54,....

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....o production and not 1-1.5% as found by the Tribunal; the Tribunal erred in accepting that the shortage was required to be worked out with reference to the total quantity received during the year; the issue is shortage on the date of stock taking with respect to the quantity which should have existed at that time; the Tribunal erred in accepting the explanation of the respondent that shortages occurred due to handling loss during the process of taking goods from bay to bins and subsequent manufacturing losses, dryage of moisture content, inaccurate estimation due to volumetric stock verification, etc., which was not discussed by the Tribunal. 11. We are unable to agree with the contentions of the Revenue. We are of the view that the....