2016 (8) TMI 660

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....ppellant Shri M.R. Sharma, AR for the respondent ORDER Per B. Ravichandran The present appeal is against order dated 10.10.2014 of Commissioner (Appeals)-I, Jaipur. The appellants are engaged in the manufacture of M.S. Bars liable to central excise duty. In November, 2012, the officers conducted certain physical verification of stock and found that there was a shortage of 45 MT. of M.S....

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.... 45 MT within two hours. Apparently, a rough estimate has been made by the officers. In such circumstances, a shortage arrived at and the statement given admitting such shortage cannot be the basis for demanding any central excise duty. Even if it is considered that there is some shortage of finished goods, in the absence of any corroboration, a clandestine removal cannot be confirmed. Ld. Counsel....

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.... contain details of how the weighment was carried out especially considering the weighment on physical verification was arrived at upto a kilogram level. Further, the whole process of weighing about 250 MTs of M.S. bars is shown to have been completed in two hours. This raises serious question about the correctness and methodology adopted for arriving at physical stock of finished goods. The whole....

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....taking and admitted the shortage of 45 MTS, in view of non-availability of very basis of stock taking and physical impossibility of going through the process of weighment of about 250 MTs of M.S. Bars within 2 hours and also arriving at the physical stock upto Kg. level without explaining how measurement was made creates serious lacunae and seriously affected the very basis of revenue s allegation....