2017 (3) TMI 768

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....sifiable under Chapter 73 of the First Schedule to Central Excise Tariff Act, 1985. On 15.07.1999, the Central Excise officers, visited the factory and conducted stock verification of inputs and finished goods. A Show-cause notice dt. 15.06.2001 was issued proposing the demand of Central Excise duty of Rs. 20,92,397/- along with interest and to impose penalty alleging shortage of MODVAT inputs in respect of which credit was taken, but not utilized and having been disposed off by them without payment of Central Excise duty. Vide Order-in-Original dated 22.09.2005, the Commr. of Central Excise, Kolkata II, passed the following order : "(A) I confirm the demand of Rs. 20,92,397/- only under Section 11A of Central Excise Act, 1944, to be paid....

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....nch to the copy of the RG 23A Part I, which indicated consolidated entry of Pig Iron and C.I.Scrap. The ld.Sr.Counsel filed a compilation of case laws in support of his contention that penalty cannot be imposed for shortage of the goods detected by the Dept. while stock taking. 4. The ld.A.R. appearing on behalf of the Revenue, reiterates the findings of the Adjudicating Authority. He submitted that the stock taking was conducted on 15.07.1999 and Show-cause notice was issued on 15.06.2001. The appellant in their reply to Show-cause notice as well as during the oral submissions on 29.01.2009 (i.e. after 10 years) disputed the manner of stock taking which cannot be accepted. He also drew the attention of the Bench to the relevant portion of....

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....r.Counsel drew the attention of the Bench to the letter dated 01.01.2008 of Addl.Commr. of Central Excise. On close reading of the said letter, I find that the appellant by letter dated 22.10.2008 requested to supply the records. In response to the said letter, the Addl.Commr. of Central Excise, by letter dated 01.01.2008(SIC 01.01.2009), as served on 07.01.2009, mentioned that the documents are supplied. So, the appellants after about 9 years, requested to supply the documents and the submission of the appellant after 10 years of stock verification that weighment was not done correctly, cannot be accepted. Therefore, the demand of duty along with interest is justified. 7. Regarding the imposition of penalty, I find force in the submission....