TaxTMI 
TaxTMI 
2005 (2) TMI 422
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....at the appellants manufacture tyres and avail of the Modvat credit of the duty paid on the inputs, namely, nylon tyre cord fabric and synthetic rubber; that the Central Excise Officers visited their factory premises on 18-7-1998 and found shortage of 602 tyres as per the R.G. I register; that the Officers also alleged shortage of nylon tyre cord fabric to the extent of 8.159 MT on the basis of standard input output ratio; that there was no shortage of tyres as the said quantity of 602 tyres was lying in their packing section, which fact had been communicated to the Department under their letter dated 20-7-1998; that, according to the practice followed by the appellants, entries in the R.G. I register were made only on or after receipt of fi....
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....ely 2% and it varies from lot to lot; that the excess moisture would not result in actual consumption of material but would only indicate excess consumption by weight; that, further, the wastage of nylon tyre fabric is also high when they were developing new tyres. The learned Advocate, further, mentioned that the Department has brushed aside these submissions made by them only on the ground that Shri K.C. Sharma had provided the input output norms; that the question of applying the norms, without having any relevance or regard to the actual parameters of the material, would only throw incorrect results. He relied upon the decision in the case of Magnum Papers Ltd. v. C.C.E., Meerut, 2003 (162) E.L.T. 447 (T). 3. Countering the arguments, ....
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....ording of statement of Shri K.C. Sharma. We also observe that Shri Sharma is working in the factory since 1994. The defence taken by the appellants is nothing but an after thought which has not been supported by any material evidence. In view of this, we uphold the demand of duty in respect of shortage of tyres. 5. It is not disputed by the Revenue that the shortage of nylon tyre cord fabric has been arrived at on the basis of consumption vis-a-vis standard input output ratio. There is no material or evidence, which has been brought on record, to show that the said raw-material was cleared from the factory without payment of duty or reversing the Modvat credit already availed of by them. There is substantial force in the submissions of the....