TaxTMI 
TaxTMI 
2019 (11) TMI 1257
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.... was done which resulted in detection of some shortage in the stock of finished goods/raw materials as follows: - SI. No. Details of Finished Goods/Raw Material found Short Stock as per Record (In Kg) Stock Physically Verified (In Kg) Difference (In Kg) Value (Rs.) Duty Involved & Deposited Duty Demanded & Confirmed 1. Finished Goods Flexible Laminated 6130.400 4195.400 (-)1935 3,19,275/- 32,885/- 32,885/- Rolls Flexible Laminated Pouches 2599.200 2307 (-)292.2 45,291/- 4,665/- 4,665/- Poly Film Printed Pouches 2742.200 445.200 (-)2297 2,75,640/- 28,391/- ....
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.... recorded on 29th of October, 2010 wherein he stated after going through the stock, statement that it appears that some goods have been cleared without payment of duty due to negligence of staff. Based on such facts show cause notice was issued dated 18/04/2011 among others proposing personal penalty under Rule 26 on the appellant director. 3. That in reply to show cause notice it had been contended that there is failure on the part of Revenue to consider the quantity of raw material issued for production as well as materials under process of manufacturing. The unit is engaged in process manufacturing activities and in each process raw material or semi finished goods at various stages is lying. It was also contended that the discrepancies ....
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.... by which the duty on the deemed production of finished goods for the alleged shortage of raw material was deleted. However redemption fine was reduced confirming the confiscation. The learned counsel for the appellant - director states that there being no instance of any active removal of clandestine removal found, nor anything wrong found with the books of accounts and statutory records maintained in the normal course of business. Only for the apparent shortage in the stock of some of the raw material and some of the finished goods does not lead to the inevitable conclusion of clandestine removal. Accordingly prays for deletion of penalty on the appellant - director. 5. The learned A.R. for Revenue have relied on the impugned order and h....