2007 (9) TMI 148 - AT - Central Excise

Allegation of shortage of inputs in not justified if there is no any weightment slip on record to show that stock was actually weighed Stock taking report cannot be said substantial evidence in absence of actual weightment slip Demand on account of shortage of inputs is set aside

Summary

Issues:
1. Allegation of stock discrepancy against the respondent.
2. Absence of weighment slip as evidence for stock weighing.
3. Finding of the first appellate authority in favor of the respondent.
4. Lack of credible evidence brought by Revenue.

Analysis:
1. The main issue in this case revolves around the allegation of stock discrepancy against the respondent, an SSI unit. The Revenue contended that there was a significant stock discrepancy noticed, indicating pilferage by the respondent. The Ld. Commissioner's observation that there was no evidence of stock taking for making the allegation was challenged by the Revenue. The Ld. JDR for Revenue highlighted specific grounds of appeal and argued that granting concession to the respondent would be unjust due to the alleged stock discrepancy.

2. The second issue concerns the absence of a weighment slip as evidence for stock weighing. The Ld. Counsel for the respondent pointed out the finding of the Ld. Commissioner (Appeal) that without a weighment slip, it cannot be conclusively proved that the stock was actually weighed. The Ld. Counsel argued that the stock taking report without the support of an actual weighment slip cannot be considered substantial evidence for concluding a shortage of inputs. The first Appellate Authority's examination of the record led to the conclusion that the allegation against the respondent was frivolous due to the questionable mode of stock taking.

3. The third issue pertains to the finding of the first appellate authority in favor of the respondent. The Ld. Appellate Authority's clear statement that the respondent should not suffer due to the questionable mode of stock taking remained uncontroverted during the proceedings. The absence of any cogent reasons or evidence brought by Revenue led to the findings of the learned Commissioner (Appeal) remaining unaltered.

4. The final issue addresses the lack of credible evidence presented by Revenue during the proceedings. After hearing both sides and perusing the record, it was noted that the findings of the first appellate authority in favor of the respondent were not challenged with any credible evidence or reasons by Revenue. Consequently, the appeal by Revenue failed, and the judgment was pronounced in favor of the respondent.