2010 (2) TMI 1010 - AT - Central Excise

Summary

Issues involved: Appeal against demand confirmation and penalty imposition for excess goods in stockyard; Interpretation of Circular No. 486/52/99/CX regarding adjustment of shortage against excess in stockyard.

Summary:
The appellant filed an appeal against the demand confirmation and penalty imposition of Rs. 3,58,04,591/- and Rs. 1,000/- respectively for excess goods found in the stockyard. The appellant argued that the duty was demanded without adjusting for the quantity found short, citing Circular No. 486/52/99/CX issued by the Board. The Circular allows for adjustment of shortage against excess in the stockyard for integrated steel plants, aiming to address difficulties faced by such plants. The appellant claimed compliance with the Circular's procedure and requested reconsideration based on the Circular's provisions. On the other hand, the Revenue contended that the Circular is prospective and the appellants did not follow the prescribed procedure, justifying the demand. The Tribunal found the Circular applicable to pending proceedings involving disputes over stockyard quantities, allowing for adjustment of shortage against excess. Consequently, the impugned order was set aside, and the matter was remanded for fresh adjudication in line with the Circular, affording both parties an opportunity to present their arguments before the adjudicating authority. The appeal was disposed of by way of remand.