2017 (5) TMI 753

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....venue. 2. Briefly stated the facts of the case are that the respondent was engaged in the manufacture of Steel Ingots & Bars/Rods classifiable under Chapter 72 & 73 of the First Schedule to the Central Excise Tariff Act, 1985. A Show Cause Notice dt. 16.08.2006 was issued alleging availing of irregular Cenvat Credit. It has further been alleged that the respondent manufactured and cleared 1295.77 MT of finished goods, found in excess in the Audited Balance Sheet for 2002-03 as compared to the Excise Return without payment of duty amounting to Rs. 33,33,940.40. By the impugned order the Commissioner, Central Excise disallowed the Cenvat Credit along with interest and also imposed penalty equal to the amount of Cenvat Credit. But the demand ....

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....urred due to oversight and inadvertence. M/s. Agarwal Himatsingka & Co., the auditor firm, also stated that the figures given to them in course of audit was erroneous and they requested the assessee that no erroneous figures are placed before them in future. I find no charges have been framed in the show cause notice as to the difference in the values as declared in between the Balance Sheet and ER-I Returns of 2002-03 excepting the excess quantity of production and clearance of 1295.77 MT of finished goods. In this situation, I am to look for other corroborative evidence of clandestine production and clearance of 1295.77 MT finished products as shown in the audited Balance Sheet of 2002-03 and I find there exists no other evidence in suppo....