2017 (3) TMI 595

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....here is short payment and non-payment of duty on the removal of the capital goods and shortage of capital goods in the factory. It was also found that appellant have collected transportation charges from their customers under the separate bill in respect of sale of their finished goods. The show cause notice was issued proposing demand of duty on the above counts. Thereafter appellant filed appeal before the Commissioner(Appeals) who rejected appeal maintaining Order-in-Original. The issue and details of demand are as under: I (a) Excise duty on freight separately collected for an amount of Rs. 5,27,677/- Duty Rs. 84,428/- (b) Shortage of finished goods valued Rs. 1,36,122.70 Rs. 21,780/- (c) On removal of capital....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ir customers, demand was confirmed only on the ground that freight amount was not shown in the excise invoice whereas the same was collected separately. He submits that even though the freight was collected separately under separate invoice the deduction permissible under the Central Excise valuation Rules cannot be denied as in-principle the freight is deductible in case of sale of goods on principle to principle basis, from the factory gate which is not under dispute. In this regard he placed reliance of Hon'ble Supreme Court decision in case of Commissioner of Customs & Central Excise Nagpur Vs. Ispat Industries [2015(324) ELT 670(S.C.)] He further submits that in the present case, it can be seen that there was no malafide intention to e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....issions made by both sides and perused the record. 5. We found that shortage and excess of the stock were found during the physical check however the contention of the appellant regarding accounting error cannot be ruled out for the reason that there was no direct evidence of removal of finished goods without payment of duty therefore merely because of shortage found in physical stock it cannot be said that there is clandestine removal. As regard the excess stock, we found that total value of the excess goods was Rs. 95,158/- whereas redemption fine was imposed to the tune of Rs. 55,000/- which is on very higher side therefore the redemption fine deserve to be reduced. As regard the demand of Cenvat Credit in respect of capital goods, we....