TaxTMI 
TaxTMI 
2016 (12) TMI 924
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.... India Steel Works Ltd was proceeded against for recovery of Central Excise duty of Rs. 4,16,493/- under section 11A along with interest under section 11AB of Central Excise Act, 1944 on shortage of stock ascertained during a check carried out by officers. The recovery was confirmed by original authority who also imposed penalty under section 11AC of Central Excise Act, 1944. First appellate autho....
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....Tri-Bang)] and Micro Forge (1) Pvt Ltd v. Commissioner of Central Excise, Rajkot [2004 (169) ELT 251 (Tri-Mumbai)] both of which held that duty liability on stock shortage is sustainable only upon actual ascertainment and that the circular referred to must be complied with. 3. Learned Authorized Representative urged that these submissions be rejected as the statement of the factory-in-charge clea....
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....next question is whether stock taking conducted on eye estimation is fatal to the case of the Department. We find that the order of the Tribunal is not on the basis of visual inspection, but based on mahazar records recording the shortage of goods, which has been done in the presence of the independent witnesses and such shortage was supported by the unretracted statement of Mr. Balaji, Manager of....