9911796707
TMI Blog1996 (4) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... as raw materials. The production of such tubes was not recorded in the RG 1 Register on 27-6-1994. After making investigations the assessees were issued a show cause notice. After according opportunity for the assessee to be heard, the original authority confirmed demand of Rs. 51,344.45 on the shortages in the finished goods, disallowed Modvat credit of Rs. 94,110.18 on the raw materials found short in stock and imposed a penalty of Rs. 5,000/- on the assessees. Against this order, the assessees filed an appeal. The Collector (Appeals) in his impugned Order set aside the orders confirming the duty demanded and for reversal of modvat credit but maintained orders of penalty. Against this order, Revenue have filed this appeal. 2. Although d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis. This was established in the judgement of the Tribunal in the case of Nagpal Steels Pvt. Ltd. [1995 (79) E.L.T. 463 (Tribunal)]. Ld. JDR submitted that the Collector had erred in his findings and prayed for restoration of the Original Order. 4. I have carefully considered the submissions of the ld. JDR and have perused the relevant records. 5. It is clear from the submissions of the assessees made both before the Original Authority and the Appellate Authority that they did not possess a weighing balance.The raw materials were coils. Their finished (sic) black pipes (sic) tubes. These goods are generally sold on the weight basis and in the absence of a weighing machine it would appear that the assessee could not conduct weighment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase cited by the Revenue [1995 (79) E.L.T. 463 (Tribunal)] the general practice in the steel industry of taking average weight has been acknowledged and the allegation of the Department that the goods in stock were in excess by 5.8% was upheld. 7. As regards the coils, they being inputs received from outside, the weight of each coil could appear on the clearance documents issued by the original manufacturer or the dealer. As such verification of the weight of the raw materials in stock would be accurate and not an approximation as in case of finished goods. 8. I find that the ratio of the judgement of the Tribunal cited by the Collector in his order is not even remotely applicable to the facts of the case. 9. A subsidiary point accept ..... X X X X Extracts X X X X X X X X Extracts X X X X
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