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TMI Blog2013 (9) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... ’s premises at the time of record, which would include all the expenses incurred upto the consignment agents premises including the transportation expenses incurred upto that point. Shortage of Stainless Steel Slabs – Balance Recorded – Held that:- The demand in respect of shortage of Stainless Steel Slabs and Plates vis-`-vis the balance recorded in the RG-I register - From the records, it was seen that the stock taking had been done in the presence of the appellant’s representatives and at that time, they had expressed their full satisfaction with the method adopted for determination of weight of the finished goods on the basis of the dimensions of the slabs/ plates - The appellant were recording the weight of finished goods in the RG-I register on the same basis - Prima Facie appellant’s plea cannot be accepted. Difference between the CENVAT credit - Held that:- Imported Mild Steel Slabs and H. R. Coils, which had been cleared as such and the amount actually paid at the time of clearance which was the duty on the transaction value - Since in respect of the clearance of the cenvated items as such an amount equal to the cenvat credit actually availed was required to be pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensity of the products i.e. by adopting the same criteria on the basis of which the quantity of the goods manufactured was being mentioned in the stock register. In course of stock taking while excess vis-a-vis balance in the RG-I register to the extent of 33.595 M.T. and 84.832 M.T. in respect of S.S. Slabs and plates respectively was found, in respect of M.S. Slabs as .S. Plates, there was shortage to the tune of 15.425 and 91.997 M.T. respectively and the duty involved on the shortage of SS Slabs and S.S. Plates was Rs.39,40,559/-. As regards the excess stock in respect of M.S.Slabs and M.S. Plats, since the officials of the appellant company present at that time could not give any satisfactory explanation for the same, the same was placed under seizure. 1.3 On scrutiny of the central excise records of the appellant company, it was found that while they had number of sales through the consignment agents premises as the goods were first being cleared from the factory to the consignment agents premises and from there the same were sold, in respect of such sales, while the duty was required to be paid on the price at which the goods were sold from consignment agent s premises w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant company, Shri Vijay Soni, Director of the appellant company and Shri Manohar Singh Rana, the Authorized Signatory of the appellant company for (a) Confirmation of total duty demand as well as cenvat credit demand of Rs.15,22,72,338/- (Rs.39,40,559/- + Rs.95,48,586/-+Rs.1,91,16,562/- +Rs.6,28,59,281/- + Rs.75,02,642/- + Rs.4,93,04,488/-) along with interest thereon against the appellant company under proviso to Section 11A(1) of Central Excise Act, 1944 along with interest thereon under Section 11AB; (b) imposition of penalty on the appellant company under Section 11 AC of the Central Excise Act, (c) imposition of penalty under Section 26 of the Central Excise Rules, 2002 on Shri Vijay Soni and Shri M. Singh Rana; and (d) confiscation of stock of the seized M.S. Slabs and plates valued at Rs.38,75,359/-. 1.8 The above show cause notice was adjudicated by the Commissioner of Central Excise , Indore vide order-in-original dated 27.2.2012 by which (a) the duty as well as cenvat credit demands totaling Rs.15,22,72,338/- was confirmed against the appellant company along with interest and penalty of equal amount was imposed on them under Section 11 AC of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n job work basis, that the demand has been raised on the basis of difference between the quantity of M.S. Slabs sent for job work as per the job work register and the quantity of the resultant product received back after job work and entered in RG-I Register, that this is wrong, as the comparison should be between the quantity of the clearances as recorded in the RG-I Register and the quantity of the clearances as per record of the dispatches and the difference between quantity shown to have been cleared in RG-I Register and the quantity returned from job workers as per job work register could not be the basis for duty demand, that the appellant have strong prima facie case on merits, that since the appellant have already paid a total amount of Rs.5,70,05,598/- which is about 37.44% of the total demand, the amount already paid is sufficient for the hearing of the appeals, more so when the appellant are facing financial difficulty and their factory has been taken over by the bank. He, therefore, pleaded that the requirement of pre-deposit of the duty/cenvat credit demand, interest and penalty by the appellant company and pre-deposit of penalty by the other two appellants may be waiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not been paid on the price at the consignment agent premises and as such, the duty demand on this count appears to be on strong footing. 5.3 As regards the duty demand of Rs.1,91,16,562/-, this is the difference between the cenvat credit actually availed in respect of the imported Mild Steel Slabs and H. R. Coils, which had been cleared as such and the amount actually paid at the time of clearance which is the duty on the transaction value. Since in respect of the clearance of the cenvated items as such an amount equal to the cenvat credit actually availed was required to be paid, this demand is also on strong footing. 5.4 As regards the allegation of wrong availment of cenvat credit to the tune of Rs.6,28,59,281/-, out of this amount, the appellant have themselves admitted wrong availment to the extent of Rs.2,68,22,040/- (Rs.2,17,31,793/- in respect of the inputs imported under DFIA and credit of Rs.50,90,247/- taken twice) and this amount has already been paid by the appellant. The dispute is in respect of the balance amount of cenvat credit of Rs.3,60,70,241/- in respect of the inputs received under Bills of Entry and invoices. The departments allegation is that this cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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