TaxTMI 
TaxTMI 
2017 (5) TMI 382
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....d in the stock of raw materials and/or finished goods at the time of inspection in the factory of the appellants. 2. In the matter of Avadh Alloys Pvt. Ltd., the facts on record are that in the course of inspection on 11/03/2008, in the course of physical verification of stock MS ingots (furnace division) & rolling division against recorded stock the stock was found as follows:- Sl. No. Description Qty. as per books (MT) Qty. physically verified (MT) Diff. (MT) Value (Rs.) Duty (BED + Ed. Cess + H. Ed. Cess] (Rs.) 1. M.S. Ingot (Furnace Division) 189.575 96.250 -93.275 2238600 322806 2. M.S. Ingot (Rolling Division) 112.340 45 -67.34 1616160 233050 3. Sponge Iron 318 290 -28 445200 64198 TOTAL 620054 In the c....
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....ximately 10%. So far scrap is concern against recorded stock of 443.231, shortage was worked out at 6.669 MT which is also less than 10%. Further, in the stock of ingots, billets against recorded stock of 317.5 MT, shortage was worked out at 22.50MT which was also less than 10%. It is further alleged in the SCN dated 27th August, 2009 that the shortage appear to be due to clandestine removal, as the responsible person has not disputed the manner of stock verification and accordingly, duty on the differential stock amounting to Rs. 7,84,912/-, including cess was demanded with further proposal to appropriate the same from the amount already deposited. Further, demand of Cenvat credit Rs. 85,980/- was raised involved in the short detected Cenv....
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....sible persons of the appellant were present who have not objected to the method of stock taking. In this view of the matter, he prays for dismissal of the appeals. 7. Having considered the rival contentions and on perusal of records, I am satisfied that there have been no actual weighment of the whole stock lying in the factory premises. Only a sample of the stock was weighed and the same was multiplied with the number of bags and Ingots etc, as could be counted or estimated. Thus, the fact of estimation of the stock is evident on the face of the record. I further hold that in such manner of stock taking. There are bound to be variation and/or discrepancy. In the case of Tehri Girders Ltd., I find that the variation found in two-three majo....