2019 (12) TMI 713

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.... the inputs and paying duty on finished goods on 23.12.2015. A search was conducted at the factory premises and following shortage of finished goods as well as raw material was found as under:- Finished Goods Qty(MT) Rate/MT Value Duty (At 12.5%) 14.751 (Hex Nut) 50,000 737550 92194 7.917 (Hex Bolt) 55,000 435435 54429 Total= 22.668   1172985 146,623 Raw material Qty(MT) (Wire Rod) Rate/MT Value Duty (At 12.5%) 156.777 28,000 4389756 548,720     Total Duty Liability 695,343/- The statement of managing director was also recorded and physical verification was done, the officer reached at 12 o'clock and remained there till 4:40 P.M, ther....

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....16 (331) E.L.T. 340 (P & H). 4. On the other hand, Ld. AR oppose the contention of the Ld. Counsel and submits that the issuance of the invoices 180 and 181 is after thought and to cover up the shortage of finished goods, therefore, the same cannot be treated as correct. He further submits that a physical verification was done during the course of investigation and shortage has been admitted by the appellant, therefore, the duty is rightly demanded to support his contentions he relied on the decision of the Hon'ble High Court of Chhattisgarh in the case of Principal Commr. Of CGST & Central Excise, Raipur Vs. G.P. Ispat Pvt. Ltd. reported in 2019 (368) E.L.T. 76 (Chhattisgarh) which has been affirmed by the Hon'ble Apex Court reported in....

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....l is set aside. Issue No. (ii) Can duty be demanded on shortage of finished goods found during the course of investigation without further investigation or not? 8. I find that the shortage of finished goods found short has been explained by the appellant that they have issued invoices 180 and 181 on the same day on which duty has been paid and the same has been explained by the appellant very next working day but no investigation was conducted. As the value adopted for the clandestine removal of finished goods no explanation has been given by the Revenue as how they have calculated the price of the finished goods @ Rs. 50,000 /MT for hex nut and Rs. 50, 000/ MT for hex bolt. In the absence of any evidence placed on record with regard to ....