2017 (6) TMI 763

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....hok K. Arya M/s Bhilai Auxiliary Industries is in appeal against Order-in-Appeal No.53/2014 dated 19.5.2014 whereunder duty of Rs. 1,66,551/- along with equivalent penalty has been confirmed. 2. The brief facts are that: (i) The appellant is a manufacturer of steel pipes and tubes falling under Central Excise Tariff Heading No. 73061029. (ii) On 24.12.2011, during verification of stock....

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....The ld. Advocate for the appellant pleads that admission of the chief executive officer itself cannot have evidentiary value and the charge cannot be sustained merely on that basis. He cited in support the Hon'ble Allahabad High Court decision in the case of Continental Cement Company Vs Union of India - 2014 (309) ELT 411 (All.). 5. After having carefully considered the facts of the case and s....

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.... "10. We heard both the parties at length and gone through the materials available on record. From the record, it appears that there was a huge shortage of finished goods for which no explanation was offered by the appellant at the time of stock checking. It means that the appellant had admitted the shortage and paid the duty accordingly. Thus, the appellant was unable to give any suitable explana....

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....ing conducted on eye estimation is fatal to the case of the Department. We find that the order of the Tribunal is not on the basis of visual inspection, but based on mahazar records recording the shortage of goods, which has been done in the presence of the independent witnesses and such shortage was supported by the unretracted statement of Mr. Balaji, Manager of the assessee company. In this vie....