TaxTMI 
TaxTMI 
2025 (12) TMI 365
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.... reference was forwarded by Tribunal pursuant to order dated 21.11.2005 passed by this Court in CEC No.18 of 2004. The reference forwarded by Tribunal reads as:- "In pursuance to the order dated 22.11.2005 passed by the Hon'ble Punjab and Haryana High Court. The statement of the case is drawn as under: 2. M/s Anshupati Textiles are engaged in the manufacture of Acrylic and Acrylic Blended Yarn. The assessee is manufacturing Single Ply Yarn which is captively consumed by the assessee in the manufacture of double multifolded yarn. The assessee was paying duty on the total quantity of Single yarn. On 20.11.96 the Officers of the Revenue Department visited the assessees' premises and there was certain discrepancies in ....
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.... question is in the affirmative, whether the assessee was still liable to pay excise duty on the afore-mentioned quantity of the single yarn?" 2. The petitioner is engaged in the manufacture of man-made yarn. It is manufacturing single ply yarn which is captively consumed to manufacture double ply yarn. During the period in question, central excise duty was not payable on double yarn whereas central excise duty was payable on single ply yarn. The petitioner as per instructions of the department was supposed to pay duty on off spindle stage. The preventive staff of respondent on 20.11.1996 searched factory premises of the petitioner. Physical verification of stock was carried out and shortage of 68.996 MT yarn at single ply yarn stage was....
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....iterated findings of authorities as well as Tribunal. 5. We have heard learned counsel for the parties and perused the record with their able assistance. 6. From the perusal of record, it is evident that matter was twice examined by Adjudicating Authority, Appellate Authority and thereafter Tribunal. All the authorities have concluded that there was shortage at the stage of single ply yarn. Relevant extracts of order dated 07.04.2003 are reproduced as below:- "4. We have heard both sides and gone through the record. From the record we find that the appellants were clearing single yarn on payment of duty against invoices issued under Rule 52-A of the Central Excise Rules and the invoices so issued showed the weight of single y....
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....hat the shortage of the single yarn detected at the time of physical verification of the stock, was due to the clandestine removal of the same by the appellants without payment of duty. Therefore, they duty and penalty on account of that shortage, in our view, had been rightly confirmed/imposed on the appellants. We do not find any illegality or legal infirmity in the impugned order of the Commissioner (Appeals) and the same is affirmed. 5. Consequently, the appeal of the appellants is dismissed without being any merit. The misc. application also stands disposed of accordingly." 7. The authorities have recorded reasons for holding that there was shortage of stock at single ply yarn stage. The findings recorded by authorities are....