9911796707
TMI Blog2009 (4) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the surprise visit of the factory of the appellant on 25-12-2004, the officers found shortage of finished goods (MSCTD bars) as compared to the daily stock register. There was no discrepancy in the stock of raw-materials and waste and scrap. After issue of show cause notice, adjudication and appellate proceedings, duty demand of Rs. 62,373/- with interest as applicable, penalty of Rs. 10,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the appellants that the shortage of finished CTD bars was found because of method of accounting the scrap received by the appellants. The appellants were accounting for scrap on the basis of weight declared by the suppliers and accounting for the finished production in the daily production register after providing for 8% manufacturing process loss without actually verifying the quantity produced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given valid reasons for enhancing the penalty under Section 11AC. This is a case of shortage simplicitor and does not deserve the penalty under Section 11AC of Central Excise Act, 1944. The learned D.R., reiterates the arguments given by the Commissioner (Appeals). 3. I have considered the submissions made by both the sides. This is a case of detection of shortage in finished goods and appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence of clandestine removal. Similar to that case there is no admission of clandestine removal which is a serious charge in this case also. Accordingly, I find that the decision of the Commissioner (Appeals) to impose penalty under Section 11AC is not warranted under the circumstances and accordingly set aside the order of Commissioner (Appeals) and allow the appeal. (Pronounced in Court) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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