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TMI Blog2009 (3) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... in the factory. There was shortage of raw materials involving Central Excise Duty of Rs. 1,74,018/-, and excess quantity of finished goods than the recorded balance in R.G.I. Duty was debited on shortage instantly. The Central Excise Officers recorded the statement of the representative of the appellant-company. By letter dated 17-7-99, the appellant requested the provisional release of excess quantity of seized goods. Hence, the Central Excise Officers again visited on 10-8-99 and conducted stock verification and found shortage of raw material involving Modvat credit of Rs. 17,362.00, which they debited on the same day. Show Cause Notice dated 30-11-99 was issued demanding duty on the shortages and to confiscate the excess quantity of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been consumed during the period 14-6-99 to 21-6-99 in the manufacture of the finished goods which were found in excess by the officers on 25-6-99. It is, however, a fact recorded in the Panchnama that they could not substantiate this case by producing any production slips or other private records evidencing the consumption of the raw material during the said period. Nevertheless, they produced certain private records along with a statement of raw material consumption, in reply to the show cause notice. These documents, apparently, purport to substantiate the explanation given by Satish Kumar Sharma in his statement dated 25-6-99 which was to the effect that the raw materials found short had been consumed in the manufacture of the finishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of the said raw material is about 31082 Kg. which is also approximately tallies quantity found excess i.e. 30774 Kg. From raw material consumption report submitted by the party at the time of reply to the show cause notice. It is also evident that consumption of raw material and production of finished goods accounted for in their private records. As such there is force in party s plea that raw material found short is consumed in finished goods which were found in excess. Moreover finished goods found excess were within the factory premises and are not liable for confiscation on the assumptions that these may be removed clandestinely. Commissioner (Appeals) has not disputed the adjustment shortage and excess. He has proceeded on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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