9911796707
TMI Blog2012 (5) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... ument about it cannot be accepted as a general rule. - Decided in favour of assessee. - E/210 and 228/2009-SM(BR) - A/956-957/2012-SM(BR)(PB) - Dated:- 9-5-2012 - Shri Mathew John, J. REPRESENTED BY : Shri Rishikesh, Advocate, for the Appellant. Shri Amresh Jain, DR, for the Respondent. [Order]. In this proceeding two appeals are being decided one filed by the assessee and another filed by Revenue against the same impugned order of the Commissioner (Appeal). 2. The appellant-assessee is a manufacturer of Bar, Rods and Wire Rod coils of Mild Steel. On 11-11-2005 the officers of Revenue visited the factory of the appellant by surprise and conducted a verification of stocks. They found that two items of raw materials, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... These are the two appeals being decided in this proceeding. 4. The Counsel for Appellant submits that, what Revenue has detected is a slight difference between accounted stock and finished stock of two items of raw material. The Revenue has not been able to produce any evidence to show that there has been any clandestine removal of the raw materials or finished goods. 5. The Counsel further submits that on 11-11-2005, the day of the visit, there were 6827 pieces of ingots were found in the factory and weights were ascertained only of 25 pieces. Based on average weight of the weighed pieces the weight of the stock of material available was estimated. This approximate method of estimation of stock has resulted in the shortage between acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the contentions now being raised should not be accepted. 8. I have considered arguments on both sides. In this type of cases involving shortages of stock of raw materials found during stock taking, it is not proper to go by the statements recorded alone. When prolonged stock taking is done in a factory, the factory authorities are under pressure due to disruption in their work and they may agree to shortages so long as the quantities are small. Issues of accounting errors also may arise which they may not be able to point out on the spot. So the argument that once the shortage is admitted, there should not be any further argument about it cannot be accepted as a general rule. 9. Firstly I consider the shortage of Furnace Oil. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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