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TMI Blog2004 (8) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... pipes the appellants specifically mentioned in their reply to the show cause notice and also at the time of personal hearing that the Officers had not physically verified the weight of black pipes with reference to the RG 1 which has maintained in terms of only weight and not in pieces. In the absence of actual weight, it cannot tally with the weight mentioned in RG 1 Register. It will be clear from the fact that the verification slips on the basis of which the so-called differences in quantity had been arrived at with reference to the figures mentioned in RG 1 Register. The weight mentioned in the slips are only approximation. The word approximate has been indicated in the verification slips and no demand can be raised on approximation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount by the Officers. He, therefore, submits that the stock verification of the raw materials had not been done properly. The allegation of shortage of 160.825 MTs of raw materials was not maintainable. He submits that welding electrodes were lying in the store but due to absence of the Store Keeper, the same was not brought to the notice of the Officers. Hence, there was no shortage of welding electrodes. He, therefore, submits that there is no merit in the order passed by the Commissioner. The Order of the Commissioner has been passed without considering the submissions made by the appellants in their reply to the show cause notice and at the time of personal hearing. He, therefore, submits that the order may kindly be set aside and bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantity of excess is considered against the total alleged shortage, the excess is only 109.177 MT. Apart from that I find that they have admitted the facts of excess stock of 274 pcs of GI Pipes. This portion of the excess detection is liable to be confirmed. In this view of the matter, I hold the noticee guilty of holding unrecorded/excess stock of finished goods at their factory during the time of stock taking. 6. In view of the admission made by the appellants, the confirmation of demand by the Commissioner for unaccounted finished goods is rightly determined and does not require any interference. 7. So far the cenvatable raw materials is concerned, the Commissioner in his finding has observed that it is factually correct that H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n together then there were no shortage of raw materials. The Commissioner has also admitted in his order that the slitted coils, at the best, can be termed as Work in Process and cannot be considered as raw materials. But it is also clear that the Work in Process cannot be treated as finished goods or shortages. The material was lying in the factory in condition of semi-finished/processed product. There may only be some procedural lapse but it cannot be said that there was any shortage of cenvatable raw materials of H.R. Coils. There may be some procedural irregularities but for that party cannot be penalised for shortage of materials and the appellants cannot be shaddled with duty and penalty. The appeal deserves to be allowed partially. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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