2016 (2) TMI 364

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....ction was carried out by Revenue in the factory premises on 10.2.2001 and stock was verified of finished goods and raw materials. In the stock of finished goods, the total excess goods of 1579 kgs was found against the balance shown in RG-1 register valued at Rs. 2,18,244/-. Also the shortages of 37.5 kg in stock of semi-finished goods valued at Rs. 1646/- involving duty of Rs. 267/- was found. As detailed in Annexure-A to the show-cause notice. In stock verification of modvatable raw material, some shortages were detected as compared to the record in RG-23A Part-I. The shortage was valued at Rs. 5202/- involved credit of Rs. 835/-, which appeared to liable to be reversed. Further inspection was made at Head Office of the appellant at Luckn....

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....llant was required to show cause as to why the seized goods 1579 kgs of pesticides and formulation (excess stock) valued at Rs. 2,18,244/- should not be confiscated involving excise duty of Rs. 34,290/- and further why not Central Excise duty of Rs. 267/- involved in 37.5 kgs pesticide found short should not be recovered and further Rs. 835/- attributable to shortage in modvatable raw material should not be recovered and further why not excess duty of Rs. 82,934/- be recovered being amount of duty on the amount of royalty and freight collected by debit notes along with interest and penalty was also proposed under Section 11 AC read with Rule 173Q. 2.2 The appellant contested the show-cause notice by filing reply and the show-cause notice w....

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....ssessable value if the appellant have paid royalty to M/s Rohne-Poulenc Agrochemicals (India) Ltd. And matter was remanded for verification of such payment to the adjudicating authority. 2.5 So far duty on freight amount is concerned, the order of the lower authority was confirmed. 2.6 As regards the ground of limitation, it was observed that facts of additional recovery by debit notes by the appellant came to the knowledge of the Revenue vide inspection on 13.2.2001 and as such extended period is rightly invoked. 2.7 The appellant is in appeal as regards the confirmation of duty on the freight component recovered by way of debit note, as well as confiscation of purported excess stock valued at Rs. 2,18,244/-. 3. The learned Counsel for....

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....k is concerned, it is pointed out that the same is only about 2% of the stock available as per RG-1 register. It is further urged that the production for the day was taken during mid-day on estimate basis, as such the shortages worked out is both erroneous and also insignificant and no adverse inference could have been drawn. As such, the same is fit to be set aside. 3.2 The learned Counsel further relies on the third Member's ruling of the Tribunal in the case of Bhillai Conductors (P) Ltd. Vs. Commissioner of Central Excise, Raipur - 2000 (125) ELT 781 (Tri), wherein it was held that confiscation is not attracted by mere non-accountal of goods in RG-1 register when there is no evidence that such non-accountal of goods still in the fa....