TaxTMI 
TaxTMI 
2018 (6) TMI 118
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....I officers visited M/s. Bedi Steel Rolling Mills Limited (BSRML), M/s. Bedi Steels Pvt.Ltd. (BSPL) and their group office located at Gurdev Nagar, Ludhiana. It was alleged that there was shortage of raw materials and finished goods. Certain records resumed from common office of Bedi group and on the basis of investigation, it was alleged that M/s.BSRML M/s.BSPL engaged in the manufacture and clearance of clandestine removal of the goods. Therefore, a show cause notice dated 25.7.2008 was issued to the assessee. The matter was adjudicated, and demands were confirmed against M/s.BSRML for the period March, 2005 to February, 2006 and March, 2007 to June, 2007 and against M/s.BSPL for the shortage of raw materials and finished goods found on 26....
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....ty of the assessee was determined as 12929.700 MT vide order dated 21.11.1997. Therefore, average production per month worked out to 1077.475 MT as per capacity determined. The rolling mill installed during compounded levy scheme was same that operated during the period under dispute and the assesses has not made any addition to plant and machinery which could have helped in increase in production capacity. To that effect, they have obtained certificate from the chartered accountant. It is his submission that the adjudicating authority has failed to consider the said fact that electricity consumption during the period 2005-06, 2006-07 and 2007-08 remains almost same or even in the disputed period less than the average consumption per MT. It....
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....rtage. 7. With regard to the appeal filed by the Revenue against M/s.BSPL, it is his submission that the induction furnace of 4 MT was installed in the factory. The raw material was scrap, pig iron, sponge iron, ferro-alloys are put into the crucible of furnace which are electrically operated. The molten metal are poured into the ladel which with the help of crane shifted to casting area where same are put into moulds for making ingots. The electricity consumption during the period 2005-06 to 2007-08 upto June 2007 remained more or less same, therefore, during the impugned period, it cannot be presumed that the assessee has manufactured the goods clandestinely and cleared the same without payment of duty. 8. It is further submitted th....
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.... perused the records. 12. On careful consideration of the submissions made by both sides, we find that it has been alleged that there was shortage of raw materials and finished goods during the course of investigation. No physical verification of stock has been produced by the Revenue in the form of weightment slips or weighment chart and how weighment was done during the short span of time in a single day for both the units. In that circumstance, the allegation of shortage of raw materials and finished goods against the assessee M/s. M/s.BSRML and M/s. BSPL is not sustainable. Therefore, the demand confirmed on account of shortage of raw materials and finished goods against M/s.BSRML and M/s. BSPL are set aside. 13. With regard to th....
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.... not come forward with any corroborative evidence how raw material was procured and how the goods were transported. In that circumstance, the demand against the assessee sought to be confirmed on the basis of assumptions and presumptions. As no corroborative evidence brought on record, in that circumstance, we hold that the demand against M/s.BSRML is not sustainable. Accordingly, the same is set aside. 15. With regard to the demand raised against M/s. BSPL on account of shortage of inputs and finished goods, as already discussed that stock verification was done by eye estimation. Neither any physical verification carried out nor weighment slips nor weightment chart were prepared to arrive at actual shortage. In that circumstance, the de....