2007 (6) TMI 110

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....bmissions made by the appellants at the time of personal hearing. The issue in the appeal is related to improper maintenance of accounts and shortage of raw material noticed by the excise officers during their visit to the factory on 3-11-98. The appellants were covered under SSI exemption up to 4-1-98 and their clearance remained within the exemption limit of Rs. 30 lakh up to 4-1-98. The appellants were working since June 1996 under SSI Scheme. The shortage of 33.230 MTs of clinker was on account of accumulation of rejects and waste over a period of two years. Certain quantity of clinker was not usable. Hence, it was stored separately as waste material. This waste quantity of clinker was found available physically in the factory premises ....

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.... Now coming to closing balance quantity of 128.700 MTs, which was available in the factory records on the day of opting for payment of excise duty on 5-1-98, I find that the appellants have explained the said quantity of 128.700 MTs of clinker shown in the records on 4-1-98 to have been utilized in the manufacture of cement on or after 5-1- 98. The said quantity of clinker was required to be shown as opening balance in the new set of records maintained by the appellants from 5-1-98 onwards. This they have not done. This is again a procedural lapse on the part of the appellants. The department has not proved that the appellants have availed Modvat credit in respect of the closing stock of clinker (128.700 MTs) after they opted for payment of....