TaxTMI 
TaxTMI 
2019 (8) TMI 598
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.... authorities in the factory premises of the private Respondents for physical stock taking of the finished goods and raw materials. This verification was carried out between 05.06.2012 to 12.06.2012. After conclusion of verification respective Panchnamas were drawn which were duly signed by the representatives of the Respondents-Company present. The physical stock taking revealed that there was a major shortage of 9076.766 MT of finished goods i.e. TMT Bars valued at Rs. 35,28,59,278/- involving Central Excise Duty of Rs. 4,36,13,406/-. There was also shortage of 16.915 MT of raw material i.e. M.S. Ingot valued at Rs. 5,53,966/- involving duty Rs. 68,470/-. In absence of any clear explanation with regard to such huge shortage in the stock, the Respondents-Company paid a part of the duty to the extent of Rs. 1,87,81,877/- and agreed to pay the balance over a period of time. 3. A show cause notice was issued on 28.03.2013 for raising demand and for recovery of total Central Excise Duty amounting to Rs. 4,36,81,876/- along with interest as also imposition of penalty under Section 11AC of the Central Excise Act, 1944. 4. The factory premises of the Respondents-Company was again searc....
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..... 9. After the panchnama was drawn they have been duly signed on one occasion by one Rajesh Tripathi, who was said to be General Manager (Finance) and on yet another occasion by the same G.M. (Finance) and one D.K. Shukla, who is said to be authorised signatory. On yet another occasion the Directorin- charge, namely, Gurpreet Singh Chandok. From the records and the statements which were made before the Central Excise authorities by Mr. Rajesh Tripathi, G.M. (Finance) and Gurpreet Singh Chandok, the Director of the Company, they clearly and categorically accepted the huge shortfall in the physical verification. It is also of significance to note that the verification and weighment was carried out by the Excise authorities on the formula suggested and accepted by Gurpreet Singh Chandok, the Director of the Company. He had also accepted in his statement about removal of finished goods and raw materials found short during physical verification without following the Central Excise procedure and without payment of duty. 10. During the course of investigation, the Company further paid the following amounts from time to time towards the demands raised against them without any demur. The ....
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....06.2012 you had endorsed the facts of the existence of the shortages of the finished goods as well as the raw materials that were detected from the physical stock verifications conducted by the Department. Further thereupon you had also assured the Department to discharge the duty liabilities rising from such shortages and eventually had also paid Rs. 1,87,81,877/- by 16.1.2012. However, consequently it has also been informed to the Department that the manufacturing activities in your factory have stopped since December 2012 and the factory has been closed ever since. IN the given circumstances, what other proposition do you have to stand by your commitments of discharging the duty liabilities which as on date remain to the extent of Rs. 2,48,31,529/-? Ans:- The economical condition of the company is not good and also the company is closed since Dec. 2012. We have to start the production very soon, and as soon as the company starts its production, we shall discharge all central excise duty liability. (emphasis ours) Q.No. 2:- Would you be able to give a time frame by which the remaining amount of the duty of excise amounting to Rs. 2,48,31,529/- involved in the goods that were fo....
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.... In any case, a fact remains on your records that the quantum of the TMT Bars as well as M.S ingots that had appeared as recorded balance on the dates of physical stock verifications conducted by the Department was at variance with the physically available stock of the same in the factory premises. Do you then accept the incisive and analytical conclusion the Department that the goods which have been found short in your factory on 05.06.2012 and 11.02.2012 have been dislodged from the physical stock without following the Central Excise procedures and without payment of duty upon removals within thus culminated into y7our agreeing to pay the duty involved the resultant shortages of excisable goods as detected? Ans:- Yes, we accept that the goods are dislodged from the factory without following Central Excise procedures, without payment of duty and against this we have already payed Rs. 1,87,81,877/- and we shall pay the remaining duty as early as possible. (emphasis ours) Q. No. 6:- Do you want to state anything more? Ans: No, sir I have read my statement dated 25/03/2013 from page No. 1 to 3 which was typed in computer on my request. The statement has been correctly recorded a....