2005 (8) TMI 212 - AT - Central Excise

Summary

Issues:
Appeal against OIO No. 23/2003 dated 18-8-2003 passed by the Commissioner of Central Excise, Visak.

Analysis:
The appellants, a Public Sector Undertaking, produced iron and steel products and faced discrepancies in quantities dispatched from the factory and sold from stockyards. The issue was brought to the attention of authorities, and a circular was issued by the C.B.E.C. outlining the procedure to be followed by steel plants. The Revenue issued a show cause notice alleging excess stock clearance without considering shortages, contrary to the circular's spirit. The adjudicating authority demanded duty on the excess without accounting for shortages and incorrectly invoked a longer period under Section 11A. The authority ignored the Board's circular on the premise that it couldn't be applied to the earlier period.

The Tribunal found the Revenue's approach negative and emphasized the significance of the Board's circular in addressing practical accounting issues. The appellants highlighted the duty paid on shortages exceeding the duty demanded on excess quantity, resulting in an excess payment. The Tribunal held that the circular should apply, directing the matter to be remanded to the original authority for adjusting excess and shortage as per the circular. No penalty was justified, and any excess duty payment should be carried forward for subsequent years. The appeal was disposed of through remand, emphasizing adherence to the Board's circular.

This judgment underscores the importance of following prescribed procedures outlined in authoritative circulars, ensuring fair treatment and proper adjustment of excess and shortage in duty payments. The Tribunal's decision serves as a reminder to consider all relevant factors and circulars in excise duty matters to prevent unjust penalties and ensure compliance with regulatory guidelines.