2017 (3) TMI 1087

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.....R.) for the Respondent Per Mr. Anil Choudhary The issue in this appeal by the appellant-assessee, a manufacturer of MS ingots, Runner and Riser as well as M.G. Kraft Paper, is whether for variation found at the time of inspection by Revenue in the stock of finished products being M.G. Kraft paper and the stock of raw material being HMS scrap, found short, whether penalties are exigible unde....

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....y. Further, as per the SCN, Rajeev Kumar Agrawal the Authorized signatory, admitted the shortage of finished products as well as raw materials as detected on inspection. However, he could not explain the reason for shortage. However, the appellant deposited by debiting Rs. 97,421/- + Rs. 1948/- for shortage of M.G Kraft paper and + Rs. 9845/- towards shortage of HMS scrap - raw material on 09/01/2....

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....een pointed out. It is further stated that the stock-taking was done within a span of about 5/10 minutes and in such short time, the physical verification by weightage could not be done and only an estimation of the stock have been done by counting the bundles and multiplying an approximate weight, and as such the variation is bound to be there. Under such circumstances, no adverse inference is ca....

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....re, the contention of the assessee that penal provision under Section 11AC and demand of interest are not attracted has no force and accordingly, is not sustainable. Being aggrieved, the appellant is before this Tribunal. 4. The Id. counsel for the appellant states that it is an admitted fact on record that some discrepancy found in the stock which was by way of estimation, no instance of any c....