9911796707
TMI Blog2012 (12) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... hat discrepancies have been noticed involving both excesses and shortages - this is a case of improper accounting rather than a case of clandestine removal of inputs and finished goods - appellants are required to maintain proper accounts of inputs and finished goods available with them as per Central Excise Rules - duty demanded and penalty set aside - E/1281/2004 - A/414/2012 - Dated:- 19-3-2012 - S/Shri S.S. Kang, Mathew John, JJ. REPRESENTED BY : Shri Aravind, Consultant, for the Appellant. Shri Parmod Kumar, SDR, for the Respondent. [Order per : Mathew John, Member (T)]. The appellants are manufacturers of lubricating oils of various specifications. They have been availing the benefit of MODVAT credit of excise du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted the same on the ground that the department had already taken into consideration the factors required for giving remission. He has also refused to look into the documents produced to show that the stock was available as per the Ledgers 6 9. The Commissioner has not accepted the documents available on the day of stock verification as corroboratory evidence. We see lot of force in the submissions made by the counsel that the Commissioner ought to have given reasons for not accepting the documentary evidence produced by the appellants. It is not sufficient merely to say that it was not a corroboratory evidence and not sufficient to prove their claim. The appellants have produced the documents with regard to the shortages found and als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing :- 5.1 Appellants were manufacturing more than 300 products and the stocktaking for such variety of products was very difficult task and the stock taking was not done with the required degree of accuracy. 5.2 They also point out that some of the impugned goods were stored in bulk and measurement of such goods stored in storage tanks was taken by dip level readings and such measurements were not very accurate. 5.3 They, further, submit that during stocktaking, there were excesses detected in respect of certain items and there were shortages in respect of certain inputs. However, Revenue has ignored the excess and demanded duty in respect of goods which were found short. They submit that all the different varieties of oils are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ums/barrels/tins and also admitted shortage of 959 Kgs of two types of additives during the investigation stage and paid duty of Rs. 2,76,455/- and Rs. 15,763/- during the investigation stage itself and there cannot be any dispute about these items in this proceedings. 9. He further submits that the argument of the Appellant that excesses found in certain types of final product against shortages against another type of final products is not acceptable because such products are different and differently priced. He further submits that the shortages were accepted by the authorized signatory of the appellants on the day of the stock taking and disputes raised at a later point of time regarding the method of stock taking cannot be accepted. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note of the large number of final products the appellants were manufacturing and the difficulty in maintaining proper accounts of such variety of goods both in packed condition and in bulk. So we are inclined to go by the argument that the errors are on account of errors in accounting rather than due to clandestine removal because of the fact that discrepancies have been noticed involving both excesses and shortages. While we agree with the argument of Revenue that such excesses cannot be set off against shortages noticed, this factor weighs in our mind while appreciating the evidence. In our view this is a case of improper accounting rather than a case of clandestine removal of inputs and finished goods. The admission of the authorized sig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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