TaxTMI 
TaxTMI 
2001 (10) TMI 176
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....hich they use numerous raw materials including PVC resin. The officers of Central Excise visited their factory on 4-3-1998 and found a shortage of 5200 Kgs. of PVC Resin. They conducted a scrutiny of the records which were being maintained by the party, and also recorded a statement of Sh. P.C. Gupta, Director of the Company, under Section 14 of the Central Excise Act. In his statement, the Direct....
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....landestinely. The show cause notice also proposed to impose a penalty on the party for alleged violation of Central Excise Rules. The notice was contested by the appellants, who, in their reply, stated that the shortage of PVC Resin was an accumulated shortage which was due to two reasons, one being that small quantities of the Resin powder sticked inside the bags even after transfer of the powder....
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....e removal has not been substantiated against the appellants and, therefore, the duty and penalty cannot be sustained. On the other hand, the DR submits that the duty was paid voluntarily by the appellants and, therefore, virtually the party has admitted the allegation of clandestine removal of inputs. He further submits that the explanation given by the appellants for the shortage detected by the ....
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....ve has also admitted today that the plea of actual utilisation of 1500 Kgs. of PVC Resin on 4-3-1998 was not raised in the reply to the show cause notice. The appellant's explanation as stated in the reply to the show cause notice was that the powdery raw material in bags could not be completely transferred into drum on account of small amounts of the powder sticking to the inner sides of the bags....