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TMI Blog2013 (11) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... stified and explained with the help of any documentary evidence - the moisture contain throughout the year will vary and will not make any difference in the overall weight recorded by the appellant - Appellants have therefore, could not explain the shortage of raw materials properly – relying upon RUTVI STEEL & ALLOYS Versus COMMISSIONER OF CENTRAL EXCISE, RAJKOT [2009 (7) TMI 231 - CESTAT, AHMEDABAD] - the burden of explaining the shortages is upon the assessees and Revenue is not required to show actual removal of raw materials. Penalty on Shri Pravin C. Jain – Held that:- He was fully aware of clandestine activities undertaken by M/s. Chandan Steel Limited and the shortages were not explained properly - He was aware of entire operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een filed by M/s. Chandan Steel Limited against Order-in-Appeal No. 386/Vapi/2009 dated 25.11.2009 passed as a result of order No. A/1602/WZB/AHD/2009 dated 20.7.2009 passed by CESTAT Ahmedabad. 3. The facts of the case are that during the investigation conducted by department, it was revealed that appellants have removed/ cleared 30500 Kgs. Of finished goods i.e. SS billets, valued at Rs. 6,10,000/-, without payment of Central Excise duty of Rs. 97,600/-. It was also seen during the stock verification that appellant has cleared raw materials Ferro manganese and Ferro molybdemum valued at Rs. 8,02,508/- involving Central Excise duty of Rs. 1,28,401/-. Show cause notice dated 28.02.2007 was issued to both the appellants demanding duty and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mall, (AR) on the other hand argued that, as per the challans submitted by the appellant along with appeal memorandum, the SS Billets claimed to have been sent to the other unit of the appellant were of Grade 201 whereas, as per Panchnama dated 05.09.2003, drawn at the factory premises of the appellant SS Billets were of Grade 200 , It was his case that the challans made available in the present appeal are of SS Billets Grade 201 and therefore, the same cannot be considered for explaining the shortages of SS Billets of Grade 200 . 5.1. So far as shortage of raw material is concerned, learned AR explained that presence of moisture will increase the weight of raw materials and will not reduce the weight as claimed by the appellant. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant, the finished goods found short were of SS Billet (Grade 200) whereas the challans relied upon by the appellant to explain the shortages in the present appeals are of SS billets (Grade 201). Appellants, therefore, have not been able to explain their case with respect to the shortages that the materials were sent to their other unit for doing certain processes. 6.1 So far as shortage of raw materials i.e. Ferro manganese and Ferro Molybdemum is concerned, it is observed that shortages were worked out as per the records maintained by the appellant. The argument that the shortage could be due to burning loss, is not acceptable because burning loss of these raw materials will result only when these raw materials are heated with ferrous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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