2017 (4) TMI 1122

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.... that during the visit of the central excise officers they conducted a physical stock taking of the stock in the factory of the appellants wherein shortage of 200.278 MTs of raw materials were found as compared to the books stock. Panchnama was drawn in the presence of Shri Deepal Shah, partner of the appellant firm and the factory manager of the appellant company who agreed the shortage in their ....

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....ortage found is questionable. As per the method of stock taking it can only lead to suspicion but cannot substitute for the proof of shortage unless physical weighment of entire stock is carried out. The appellants submitted that it was necessary to go for 100% physical weighment prepared for inventory as corroborative evidence vis-a-vis panchnama and statement recorded under Section 14. The Depar....

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.... taking is nothing but after thought. Even the shortage was accepted by the partner and the factory manager of the appellants firm in the statement recorded under Section 14. Therefore, now any explanation given by the appellants to question the shortage is of no help. He further submits that appellants not only accepted in the statement recording the shortage of inputs, but also debited the cenva....

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....5. I find that at the time of visit of the officers, they detected some shortage by conducting the physical verification. Regarding shortage, the panchnama was drawn which was not disputed by the appellants. Subsequently, the statement under Section 14 was also recorded of Shri Deepak Shah, partner and also of factory manager of the appellants firm wherein they have admitted the shortage. The appe....