TaxTMI 
TaxTMI 
2017 (11) TMI 977
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....e notice dated 15 May, 2008 are that the appellant is engaged in manufacture of M.S. Bar/Rod TMT Steel falling under Chapter 72 of CETA, 1985. There was an inspection in the factory on 15 November, 2007. At the time of visit no production activity was going on. During the scrutiny of records, it was noticed that appellant had availed Cenvat Credit amounting to Rs. 79,618/- and Rs. 2,74,421/- on the items namely B.P Sheets and Shapes and Sections, respectively claiming them as capital goods. On enquiry, it appeared that the said goods were used by appellant as a part/component in expansion of the factory shed. The said credit appeared to be wrongly taken, as the said goods and had not been utilized in manufacture of final products. Instead h....
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....in the premises was found to be 25,468 pieces lying in 80 lots and the quantity of Billets was found to be 1234 pieces lying in 10 lots in the premises. With the assistance of the representative of the appellant, the stock was sought to be verified, but it appeared that the actual weighment of the goods was not possible as the production in the factory was suspended for the last three days for maintenance work and no labour was available. So, the quantity was ascertained, and weight was as certained by taking the average weight of such ingots on random sampling basis. One piece of ingots was randomly selected from each of the 10 big lots, was actually weighed on the electronic weighing scale installed in the factory premises and total weigh....
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....ed that the shortage is due to actual weight which was arrived at by taking the average weight of each ingot as 111 Kg. Whereas as per the general practice observed by him so far, the average weight of MS Ingots varies between 101 Kg to 120 Kg, depending upon the specification of the MS Ingots suppliers. However, it appeared to Revenue that such shortage was on account of clandestine removal and accordingly, the appellant was required to reverse the Cenvat Credit on the same calculated at Rs. 8,31,893/-. The appellant apparently agreed with the shortage, reversed the Cenvat Credit of Rs. 8,31,893/- vide entry No.2851 dated 15.11.2007. 5. Further, the verification of stock of finished goods MS Bars was also done similarly on the next date....
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..... It appeared to Revenue that the excess stock was liable to confiscation under Rule 25 of CER, as the responsible person of the appellant could not state any convincing information about the shortage. Therefore, there was reasonable belief that the excess stock of 187.611 MT MS Bars was not accounted for deliberately with intent to suppress the production and clear the same clandestinely. The said excess stock was seized vide seizure memo and Supurdnama dated 16 November, 2007. The value of the seized goods appeared to be Rs. 48,36,612/- and on which duty @ 16% worked out to Rs. 7,89,335/-. The said seized stock was released provisionally on furnishing of bank guarantee and bond with the satisfaction of the Deputy Commissioner. 6. It fu....
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....7,89,335/- under Rule 25 CER. Further, giving option of redemption on payment of fine Rs. 30 lakhs. Further, the demand of Service Tax of Rs. 89,985/- was also confirmed along with order for appropriation. Being aggrieved the appellant preferred appeal before learned Commissioner (Appeals) who was pleased to confirm the demands but was pleased to set aside the penalty of Rs. 3,34,039/- which was imposed with respect to Cenvat Credit taken on P.C. Sheets and Shapes and Sections. Further, the redemption fine was reduced from 30 lakhs to Rs. 10 lakhs. Being aggrieved the appellant is before this Tribunal. 8. The learned counsel for the appellant states that from the very plain reading of the show cause notice, it is evident that no element ....