2017 (4) TMI 1122

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ondent ORDER The fact of the case is 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he actual stock, therefore the quantum of shortage 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 st....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ers, no dispute was raised by the appellants, therefore, subsequently questioning the method of stock 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 appel....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... h) S.M. Steel Ropes 2014 (304) ELT 591 4. I have carefully considered the submission of the ld. AR and the grounds of appeal made by the appellants. 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....