TaxTMI 
TaxTMI 
2007 (9) TMI 98
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....g of raw materials i.e., copper goods. Statement of the proprietor was recorded and investigation was concluded. On conclusion of the investigation, a show cause notice was issued to the appellant for demand of duty of Rs. 1,06,659/- on the ground that the appellant had manufactured and cleared finished goods clandestinely out of the raw materials found short. The appellant contested the show cause notice on various grounds and also took a plea that duty cannot be based on presumption that the appellant had or would have manufactured finished goods out of the raw materials, which were found short and the same was clandestinely removed. The adjudicating authority confirmed the demand and also imposed equivalent amount of penalty, besides tha....
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....nbsp; As per balance sheet 3438.00 Kgs - RG-1 stock 1953.00 Kgs - 17303.50 Kgs 1683.50 Kgs - Job work + sales 15621.00 Kgs - Should be stock GOODS MANUFACTURED/STORED 750.00 Kgs - DCC Wire 7500.00 Kgs - Copper strips 2200.00 Kgs - &....
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....evant period (which is evident from the Annexure "A" to the Panchanama) but have not reproduced the stocks recorded therein anywhere, which would indicate that the book balances against which physical balance is sought to be tallied is not of RG-23-Part I. The entire exercise done by the lower authorities seems to be pointing towards the fact that shortage of the raw material was worked out based on the stocks as declared in the balance sheet and on the presumptive ground that such raw material was used for the manufacturing of finished goods, which were clandestinely removed. It is on record and undisputed fact that there is no other evidence of clandestine removal by the appellant. 7. It is settled law that the demand of duty has to be....