TaxTMI 
TaxTMI 
2019 (12) TMI 53
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppellant have rightly taken cenvat credit on supplementary invoices raised by South Eastern Coalfields Limited (a PSU) for supply of coal to the appellant. 3. The appellant is engaged in the manufacture of iron and steel products. Their main raw materials are pig iron, coal, sponge iron. The finished goods/ products are MS ingots and steel grits. During physical verification of stock of raw material and finished goods, a panchnama proceeding on 07.11.2015 was drawn. The Revenue officer took a declaration of the stock of raw material and finished goods as per record from Shri Ajay Kumar, Authorised Signatory. The physical verification was done with the help of Shri Dinesh Patel, a Surveyor/employee with SECL, a qualified person. As per th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....corded, which has been relied upon in the show cause notice. The question Nos. 6 and 7 and the respective answers are as follows: Q. No. 6: Search and preventive search was conducted in your factory premises under Panchnama dated 07.11.2015 in presence of you and Shri N. K. Ajay Kumar, manager commercial and Authorised Signatory of your company. Are you satisfied with the Panchnama proceeding conducted in your factory premises? Ans. Yes Sir, i am very much satisfied with the Panchnama proceeding conducted in our factory premises on 07.11.2015. Q. No. 7 The physical verification of the stock lying in your factory conducted under Panchnama dated 07.11.2015 reveals that there was physical shortage in the stock of Pig....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty, etc. on which duty was not charged and paid earlier, but the same was later done on being so insisted by the Revenue. The issue of levy of duty on cess, etc. is sub judice before the Hon'ble Supreme Court. 6. The show cause notice was adjudicated on contest and the proposed demand confirmed, both the amounts were appropriated from the amount of pre-deposit. It was further ordered to recover the interest and penalty of Rs. 7,76,382/- was imposed under Section 11AC (1)(c) of the Central Excise Act and further penalty of Rs. 3,00,000/- under Rule 26 of Central Excise rules, 2002 was imposed on the Director, Shri Manoj Parasrampuria. 7. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals) who vide impugned....
X X X X Extracts X X X X
X X X X Extracts X X X X
....reported as 2015 (317) ELT 136 (Tri. Del.), wherein also in the case of manufacturer, manufacturing MS pipes, GS pipe, shortages so detected of some raw material at the time of verification, and the statement of Director recorded who deposed that such shortage have been cleared by them without issue of invoice. Under such facts and circumstances, this Tribunal observed that on the basis of shortage so detected and the statement of the Director, no case of clandestine removal is made out in absence of complete evidence leading towards clandestine activities. Though, an admission is extremely important piece of evidence, it cannot be said to be conclusive in itself. As regards the second issue, regarding disallowance of cenvat credit, the app....