2017 (3) TMI 1434

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....se duty by way of suppression of production and clearance of the goods through various means. Shri Mahendra Kumar Kabra one of the director of the main appellant appeared before the Superintendent (Preventive) on 8.12.2008 and tendered his statement that he is dummy director and ShriK.N.Tirpatahi looks after the whole of the work of the unit and He was forced to pre-authenticate the invoice books having pre-printed serial numbers and parallel invoice books were handed over to the despatch clerk and at the time of clearance of goods, dispatch the clerk put serial number on the invoice by franking machine after that the goods were cleared on these parallel invoices and a person on Motor Cycle used to accompany the vehicle till the goods reach....

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....Aggrieved with the said order, the appellants are before us. 3. Heard the parties and considered the submissions. 4. In this case, the demand has been raised on the basis of the stock verification and various statements recorded during the course of investigation and thereafter on various grounds. All the grounds are dealt separately: (a) A demand of Rs. 4,24,70,378/- has been confirmed alleging that the appellant has shown the excess burning loss thereby they have evaded the duty on assumed excess production 10,249.730 MT of M.S.Bars. 3. We find that the appellant has contended that during the period July, 2006 to March, 2009, the appellants were filing their monthly returns alongwith the copies of RG 23A part-I and Part-II reg....

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....of shortage of M.s.Bars weighing 1932.05 MT found short as against RG-1 register showing 2928.725 MT of M.S.Bars as against actual stock only 9936 MT. 4. The contention of the appellant is that with regard to this allegation is that the proceedings were started at 3 pm and closed at 11 pm. During such short span of time huge quantity of stock cannot be weighed physically. The weighment has been done only on eye estimation basis and the cross examination of panch witnesses were not granted. 5 We find that to allege shortage of goods it is to be ascertained on the basis of physical verification of the stock and whether the goods have been physically weighed or verified or not, the cross examination of the panch witnesses is required whi....