TaxTMI 
TaxTMI 
2015 (11) TMI 459
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.... manufacturer appellants are against the order of imposing penalty on them under Rule 26 of the Central Excise Rules, 2002. As facts of the case are common, therefore, all the appeals are taken up for disposal by common order. 2. The facts of the case in brief are that on 13.10.2009 a search was conducted in the premises of all the four manufacturer appellants wherein finished stock of MS Ingot was found excess. In the case of M/s. Shivangi Estate Ltd. it was found 13.82 MT which is more than 25% of the stock recorded in their statutory records. In other appellants namely M/s. Jaideep Ispat & Alloys P Ltd. & M/s. Moira Steels Ltd. the excess stock was found less than 5 % of the stock recorded in their statutory records. As finished goods w....
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....CE Lucknow-2014 (314) ELT 166 (Tri-Del) and Unique Intercontinental Ltd. Vs. CCE Chandigarh-2014 (314) ELT 329 (Tri-Del). 4. On the other hand, Ld. AR oppose the contention of the Ld. Counsel and submits that when appellant themselves are recording the stock in their statutory records on average basis, therefore, the physical verification done on average basis cannot be contraveted by the appellant at this stage. He further submits that there may be little variance can be found but in the case of M/s. Shivangi Estate Ltd. there is a difference of more than 25%. But appellant is recording the stock in their statutory records on average basis and on weighment is also done on average basis then in that case there should not be any variance. T....
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....t M/s. Jaideep Ispat & Alloys P Ltd. is manufacturing two types of MS Ingots. One is in the size of 3x4 inches and another is 3.5x4.5 inches and total number of ingots found were 17,498 pieces. I find that when appellant is manufacturing two types of goods and while counting ingots it is not coming out from the facts of the case that how much of ingots are 3-4 inches and how much ingots are 3.5x4.5 inches. Therefore, the weighment method on average basis cannot be correct. Therefore, there may be a variation while taking the stock. In these circumstances, the method of counting the stock is not correct in the case of M/s. Jaideep Ispat & Alloys P Ltd. Therefore, excess stock found may be due to this variance. In these circumstances, the exc....