1995 (6) TMI 109

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..... 375 kg. Accordingly, the total weight of ingots was worked out at 265.115 MT. Since the recorded balance in the RG was 250.560 MT, the excess of 14.555 MTs containing 157 ingots was seized. After adjudication proceedings, the Assistant Collector ordered confiscation of this quantity with an option to redeem it on a fine of Rs.10,000/-. He also imposed a penalty of Rs. 5,000/- on the respondents. The Collector (Appeals) before whom the assessee went, held that there was no provision in law to take action on the basis of average weight. She therefore, set aside the Assistant Collector s order. This order is now being challenged before this Tribunal. 3. Sh. B.D. Bhagat, DR adopts the arguments in the appeal. The determination of .....

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..... neral practice in the industry was to take the average weight. The reply says Generally in steel industry, average weight of ingots is taken and recorded in statuory records. This is done by taking out the average weight and multiplying the weight with the number of pieces. It is impossible that actual weight of ingots turns out more or less than the average weight. Thus, it is clear that the assessee was maintaining the records on the basis of averages. 6. I do not see how the assessee can now object to the officers adopting the same method which he adopted and which he says the entire industry adopts. It is often the practice in many industries where goods are handled in bulk that an average is taken to calculate the total weight or .....

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..... verage weighment which is prevalent in the industry and which he himself has been adopting, should be accepted. The question of estoppel would not arise. This Tribunal s decision in the Simplex Castings case is distinguishable because there even a sample weighment was not done. I am therefore, of the view that the method of weighment resorted to was not incorrect. Having said that, I would suggest that in order to avoid disputes of such kind, such goods would be weighed as far as possible. The excess comes to about 5.8%. This is not a figure which one could feel would naturally arise due to difference in weight. I am therefore, of the view that the confiscation was warranted. However, I note that there is nothing to su .....

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