1994 (10) TMI 173 - AT - Central Excise

Summary

Issues:
1. Duty demand on branded and unbranded biris found short during a visit.
2. Imposition of penalty for the shortage.
3. Ownership and management changes in the factory.
4. Discrepancies in stock records and physical verification.
5. Arguments regarding capacity of storage rooms and shelf life of biris.

Analysis:

1. The case involves a duty demand on branded and unbranded biris found short during a surprise visit by Central Excise officers. The Additional Collector confirmed the duty demand on the shortage of biris and imposed a penalty of Rs. 2,000. The appeal challenges this decision based on discrepancies in stock records and physical verification conducted on the premises.

2. The ownership and management changes in the factory are crucial aspects of the case. After the death of the previous owner, the present appellant became the sole proprietor. The appellant's communication to the department regarding the shortage of biris was noted, along with the lack of satisfactory explanations for the discrepancies found during the visit.

3. The discrepancies in stock records and physical verification are highlighted, indicating a shortage of branded and unbranded biris. The tribunal observed the appellant's contentions regarding the stock transfer and previous management but upheld the charges based on the evidence presented during the inspection.

4. Arguments regarding the capacity of storage rooms and the shelf life of biris were raised by the appellants. However, trade opinions and stock records from the past year contradict these arguments. The tribunal found that the stock balance discrepancies occurred during the appellant's ownership period, holding them responsible for the duty payment on the shortage of biris.

5. In conclusion, the tribunal upheld the findings of the Adjudicating authority, confirming the duty demand and reducing the penalty to Rs. 500. The appeal was rejected based on the evidence presented during the inspection and the ownership transition period. The cross objections were considered as comments on the impugned order, requiring no further action.