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TMI Blog1993 (1) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- with a duty involvement of Rs. 10,355.20. On the basis of the stock verification, adjudication proceedings were held by the Assistant Collector, who confirmed the demand for duty of Rs. 10,355.22 in respect of the shortages and imposed a penalty of Rs. 5000/-also ordered confiscation of the excess found, but allowed redemption on payment of a fine of Rs. 3,000/-. On appeal before Collector (Appeals) he reduced the redemption fine to Rs. 2,000/- and the penalty to Rs. 3,000/- and confirmed the rest of the order. The appeal is therefore before the Tribunal. 3. Shri Pikle, the learned Consultant, submitted that the total turnover from this unit is to the extent of Rs. 31 crores and they pay an annual revenue of Rs. 4.5 crores. This would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that the reconciliation statement was verified by the Supdt. and was not acceptable. He also contended that the excess quantity deposited in the store room was without accountal and hence as per the provisions of Rule 173Q, any goods found in excess and not accounted for is liable for confiscation, because it may lead to potential removal without payment of duty. He thus supported the order. 5. After hearing both sides, I find that immediately after the stock verification was done, a statement was recorded where the variations were accepted. All the same it was pleaded that they would be able to explain the position only after verification of the records. Hence when, after verification of the records, they have sought to reconci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are found to be missing or not found, there is a statutory obligation on the part of the assessee to explain the discrepancy properly. If no satisfactory explanation is forthcoming, it has to be construed that the goods have been disposed of in a manner otherwise than that prescribed in the rules. Hence I confirm the duty demand on the admitted shortage, which is not reconciled, which works out to Rs. 1458.24. 6. As regards the excess noticed, it is observed that this excess was found deposited in the store room and the possibility of non-recording the deposit made in the bond store room cannot be ruled out. In the circumstances, I would deem it proper to caution the appellants to be more careful in future and remit the redemption fine. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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