2019 (11) TMI 1257

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....n 20/10/2010. During the search stocktaking 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/- ....

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....1/-. He also accepted the shortage of raw materials and assured for payments. Further he could not explain the discrepancies found in the stock of raw materials and finished goods. Further the statement of this appellant - Shri Arpit Jain was also 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 ....

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....reject the appeal of both the company and the director. Being aggrieved the appellant and the company preferred appeals before this Tribunal. The appeal of the company (Appeal No. E/51239 of 2014-Ex) stand disposed of vide Final Order dated 20.03.2015 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....