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TMI Blog2002 (9) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty of Rs. 5 lakhs on Shri N.K. Jain, General Manager. 3. The facts of the case briefly stated are that M/s. M.P. Iron Steel Co. are engaged in the manufacture of excisable goods i.e. wire rods, rounds, etc. The Officers of Central Excise visited the factory premises of the appellant and carried out a physical verification of the stock of raw material and finished goods. On verification it was found that the actual stock of Billets and Blooms was less than the quantity shown in the RG.I register. Statement of Shri Pushpak Bansal, Dy. Manager was recorded. He deposed that he was unable to explain the shortage in stock of Billets and Blooms. Statement of Shri N.K. Jain was also recorded wherein he stated that he was satisfied with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 90 kgs. is the grinding loss which is generated in the form of waste and scrap. Ld. Counsel submits that the waste and scrap is cleared on payment of duty. Ld. Counsel referring to the Technical Literature The Making, Shaping and Treating of Steel submits that for manufacture of wire rods/rounds grinding is necessary. He submits that grinding is sometimes undertaken for removing defects from semi-finished steel. 5. Ld. Counsel submits that there was no clandestine removal; that clandestine removal has been alleged only on the ground that there was a difference in the weight of billets and blooms when compared with wire rods. It was submitted by the ld. Counsel that Commissioner has relied on the difference in weight without taking into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of billets and blooms when compared with same number of wire rods obtained by grinding the billets and blooms. We agree with the Counsel for the appellant that there is no finding that there was a difference in the number of billets and blooms which subsequently were after grinding obtained as wire rods/rounds. We also note that there is no evidence placed on record to show any removal from the factory in the form of wire rods/rounds. We further note that billets and blooms are subjected to the process of grinding to remove the defects etc. and that in the process of grinding, there is a loss in weight. This loss in weight is in the form of waste and scrap generated in the process of grinding. We also note that this waste and scrap is cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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