2005 (9) TMI 179

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....llant-firm and these loose papers shown the production from 1-11-91 to 30-11-91. According to these loose papers, the production of ingots is much higher than reflected in the RG-1 record. Physical verification was also conducted in respect of the final production found in the factory and it was found that there was shortage of final product. Show cause notice was issued asking for duty in respect of the final product found in short and in respect of the ingots as per slips recovered from Shri D.K. Rana which were not reflected in the RG-1 record. The adjudicating authority dropped the demand on the ground that the demand was raised on the basis of unsigned slips and Shri D.K. Rana was not the employee of the present appellant, in respect o....

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.... 6. In respect of the goods found short in the factory the contention is that these shortages was arrived at only estimate basis. The appellant relied upon Panchnama prepared at the time of verification which says the goods were never weighed and only the average weight was taken. The contention is that the demand cannot be made which is arrived at on the basis of average. 7. The contention of the Revenue is that Shri D.K. Rana never retracted in his statement. As per his statement, he admitted that the recovery of the slip which petains to the production of the ingots during the period 1-11-91 to 30-11-91. The contention is also that Shri Mahendra Pal Agarawal, Director of the appellant could not explain the difference of production sho....