2015 (10) TMI 1551

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....manufacturer of MS Ingots from sponge iron and iron scrap. A search was conducted in the factory of the appellant on 28.08.2001 and finished goods were verified. It was found that as per statutory records the stock was entered as 300.91 MT and on physical verification it was found 296.050 MT. Therefore, there was a shortage of 4.86 MT of finished goods. Another investigation was conducted in the premises of the appellant on 30.08.2001 wherein verification of stock of raw material i.e. sponge iron took place and it was found that as per books the stock is entered as 311.115 MT whereas it was found 20 MT. Therefore, there was a shortage of 291 MT of sponge iron. It is also alleged that on 13.09.2001 to 15.09.2001 physical counting of iron scr....

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.... documents to the appellant. Thereafter, the relied upon documents were supplied to the appellant and impugned order has been passed. Aggrieved from the said order appellant is before me. 3. The Ld. Counsel appearing on behalf of the appellant submits that in this case no panchnama was drawn for weighment of finished goods as well as weighment of iron scrap. Although weighment of iron scrap was continued for three days i.e. 13.09.2001 to 15.09.2001 but no weighment slip / panchnama was supplied to the appellant to allege that there was a shortage of 465.980 MT of duty paid scrap and 1.005 MT of non duty paid scrap. Therefore, allegation of shortage of iron scrap is not justified. It is further submitted that to manufacture MS Ingots the ap....

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....nly panchnama was drawn for the weighment done on 30.08,2001 wherein sponge iron was found short of 291 MT. For the weighment done on 28.08.2001 and 13.09.2001 to 15.09.2001 no panchnama was drawn. Therefore, in the absence of panchnama or any other evidence on record it cannot be alleged that there was shortage of finished goods or iron scrap at the time of weighment of said goods. If there was shortage, Revenue could have produced the panchnama as well as weighment slip as they have done for the shortage deducted on 30.08.2001. Therefore, allegation of shortage of finished goods on 28.08.2001 and weighment done during the period of 13.09.2001 to 15.09.2001 is not sustainable in the absence of any reliable evidence. Further, the Revenue co....