9911796707
TMI Blog2005 (8) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... na Wadhwa, Member (J)]. - Being aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. After hearing both sides duly represented by Shri N.V.B. Nair ld. DR and Shri Hardik Modh ld. Advocate. I find that the respondent unit was visited by the Central Excise Officers on 2-5-1997. On verification of the records and physical stock taking, it was observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Rules. Penalty of identical amount was also imposed under the provisions of Section 11AC read with Rule 57-I(4). 3. On appeal against the above order the appellant pleaded that there was processing loss of the inputs during the course of manufacture of their final product i.e. castings which are sophisticated in nature and require high degree of precision and as such wastage of pig iro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls Company (supra), wherein it is held that demand worked out on the basis of ratio fixed by the department was not sustainable. In the absence of any evidence to show that there was any clandestine clearance of inputs as such, I am inclined to accept the defence plea raised by the appellants that the inputs in question were lying very much within the factory. Since the demand is not sustainable, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication to the facts of the instant case inasmuch as the quantum of inputs issued for manufacture of the final product is always inclusive of the loss, which the inputs may undergo during the course of manufacture. As such, after issuance, loss of inputs cannot be accepted as a justifiable explanation for the shortages of inputs vis-a-vis recorded balance as reflected in RG 23A Part-I. It is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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