2002 (9) TMI 241

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....rap. On 17-5-94, their factory premises were visited by the Central Excise staff of Amritsar Division. On verification of the finished goods, it was ascertained that there was an excess of 25 pieces of steel ingots weighing 2456.250 kgs. as against the balance recorded in their RG. 1 Register. Accordingly, these ingots valued at Rs. 21,615/- were seized. The visiting officers also found shortage o....

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....e 226. They were therefore called upon to show cause why the seized goods should not be confiscated and why the Central Excise duty amounting to Rs. 46,570/- on 35.280 MT of iron and steel scrap found short which were converted into steel ingots and removed without payment of duty should not be recovered from them. They were further called upon to show cause why penalty should not be imposed on th....

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....r (Appeals), Chandigarh vide his Order dated 20-1-2001 rejected their appeal with the following observation: "I have considered the matter carefully and find that Central Excise staff from Amritsar Division on physical verification had found 25 pcs. of steel ingots lying in excess over and above the recorded balance of the goods in stock. The staff also detected a shortage of 35.280 MT of scrap....

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....e considered the submissions made before me. I agree with the plea of the ld. Counsel for the appellants that there is no evidence of the conversion of the steel scrap found short into the steel ingots much less there is any evidence of the clearance of the same clandestinely without payment of duty. The Original Authority in his order has not given any findings as to how he has arrived at the con....