9911796707
TMI Blog2003 (3) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... arried out. Clearance of goods without debiting duty in the PLA, shortage of input, namely, Lead Oxide etc. were noted during verification. Subsequently, a show-cause notice was issued. This notice was adjudicated by the Deputy Commissioner imposing a penalty of Rs. 10,000/- on the appellant. Dissatisfied with this order, Revenue filed an appeal before the Commissioner (Appeals). The grievance made out in the appeal was with regard to availing of Modvat Credit on inputs. While the Commissioner rejected the contentions on other grounds, he held that there was a shortage of 16.225 MTs, of Lead Oxide. Accordingly, it was ordered that the appellant should pay duty on the quantity found short. The relevant portion of the finding is reproduced be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n regarding the quantity of 8.07 MTs of the inputs contained in the quantity of finished goods manufactured on 8-12-94 is not correct since this quantity was already taken into account by including the quantity of the inputs under process on 8-12-94. The quantity of inputs contained in the processed material is different and the quantity of inputs contained in the finished goods is different and, therefore, the two quantities cannot be equated and the appellant s subsequent explanation in this regard is acceptable. Further, since the receipt of 5 MTS of the inputs has also been proved as accounted for and used in the manufacture of the finished goods, the same should also be taken into consideration for the computation of the shortages. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1079/24-11-1994) __________ Total 73.825 M.T. Lead Oxide consumed from 3-12-1994 To 6-12-1994 15.350 M.T. Lead Oxide in the process material on 8-12-1994 8.550 M.T. Lead Oxide in the already finished goods On 8-12-1994 (taken in RGI in 9-12-1994) 8.075 M.T. Lead Oxide available on floor 25.625 M.T. __________ Total 57.600 M.T. 73.825 M.T. (-) 57.600 M.T. Shortage of Lead Oxide on floor 16.225 M.T. From the above it is clear that alleged shortage on the floor is only 16.225 M.T. (649 Bags). This qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner had accepted their explanation. About the delay in explaining the shortage, it has been stated that the Factory Manager had informed the Officers on 8-12-1994 that he will make verifications and give a statement in a week s time. However, no statement was recorded from him and only show cause notice was issued. 4. The learned D.R. has contented that the appellant s explanation regarding repair of the floor is too belated and the Commissioner was, therefore, justified in rejecting the explanation and demanding duty. 5. The core of the appellant s contention is that their production records confirm that the alleged missing quantity had actually gone into the production of final products and in such a situation there was no ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
