2001 (10) TMI 147

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...., confirmation of demand of duty of Rs. 73,790/-, disallowance of Modvat credit of Rs. 94,477/- on inputs found short and imposition of penalty of Rs. 25,000/-. 2. The facts of the case in brief are that the Central Excise Officers visited the factory premises on 17-7-1997. On physical verification of the stock, they found an excess 159 rolls of polyfilm weighing 3340 kgs. and 1475 kgs. of LDPE....

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....reply to the SCN, the appellants explained that the material which has been found short had been used in the manufacture of final products polyfilm; that the same can be co-related; that there was no allegation about clandestine removal of excisable goods, therefore, there was no question of confiscation of goods or demand of duty or reversal of Modvat credit or imposition of penalty. The Assistan....

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....oods was not warranted. In support of this contention, he cited and relied upon the decisions reported in 2001 (136) E.L.T. 1185 (Tribunal) = 2000 (41) RLT 719 and [2001 (135) E.L.T. 353 (Tribunal) = 2001 (43) RLT 38]. 4. In regard to excess of 1475 kgs. of LDPE granules, ld. Counsel submits that it was due to oversight that this amount was not entered in RG 23A Part I. In regard to shortage of....

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....therefore, prays that the appeal may be allowed. 5. Shri D.N. Choudhary, ld. DR submits that the shortages and excesses of goods was admitted by Shri Sonal Nurpuri, Director of the company; that at the time of stock verification he could only say that RG-1 register could not be maintained because the excise clerk was on leave. He could not explain that the shortages of inputs were on account of....