2017 (11) TMI 700

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....09.2004, the factory of the appellants were visited and it was found that Sh. Mewal Das, an employee was present who failed to produced the record and stated that the records are at the office in Kanpur. However, the invoice book was produced. Then, their head office in Kanpur was also searched. As per the statutory records, it was found that the balance of finish goods namely M.S. Ingots was of 1221.025 MT and runner riser as 35.915 MT. Sh. Sunil Khatri was present who stated that Sh. Sourabh Jain who is looking after the factory work has gone to Tehran on 11.09.2014 and will be back by the end of the month. An investigation was done at the factory premises and various sizes of M.S. Ingots namely 52", 55" and 58" were found. The stock taki....

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....was conducted and stock verification was done only on eye estimation basis. It was also submitted that in cross-examination, Sh. Mewal Das explained the truth to find out the fact that the stock taking has been done on the eye estimation basis for physical verification. Therefore, impugned order is liable to be set aside on this ground only in the light of the decision of the Hon'ble Apex Court in the case of Andaman Timber Industries Vs. CCE - 2015 (324) ELT 641 (SC) and Basudev Garg Vs. CC - 2013 (294) ELT 353 (Delhi). He further submitted that the officer did not physically verified the goods. As out of 10372 PCS only 10 PCS of each size were weight and on average basis, the shortage was alleged. As the shortages of out of 1130.548 MT fo....