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2014 (12) TMI 366

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..... e production slips pertaining to November 2008 and first fortnight of December 2008. Since, the power consumption figure for these periods are also available, the power consumption during November 2008 comes to 900 units per M.T. and the same for first fortnight December 2008 comes to about 500 units per M.T. The power consumption thus is in the range of 500 to 1000 units per M.T. as per the IIT, Kanpur study and, therefore, prima facie the production recorded in these slips appears to be the actual production and, as such, the duty demand for November 2008 and first fortnight of December 2008 based on production slips appears to be on stronger footing. Partial stay granted. - Appeal No. 53150 of 2014 (SM) - Stay Order No. 52782/2014 - Dat .....

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..... mpany recorded the production of 49.92 M.T. in their RG-1 register, it appeared that production of 443.885 M.T. of MS Ingots had not been reported and this quantity had been cleared clandestinely without payment of duty. Beside this, during stock taking of the MS Ingots, it was found that there was shortage to the extent of 16.215 M.T. vis-`-vis the balance in the RG-1 register. It thus appeared that 460.10 M.T. of MS Ingots involving duty of ₹ 14,69,382/- has been cleared clandestinely without payment of duty. Beside this, there was also shortage of Cenvat credit availed sponge iron and Cenvat credit availed pig iron, the total Cenvat credit involved in respect of which was ₹ 4,54,984/-. 24 M.T. of runners and risers were also .....

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..... of the production slips, the department has alleged that 443.885 M.T. of MS Ingots were not accounted for in the RG 1 register and was cleared clandestinely, that merely on the basis of production slips, it cannot be presumed that the quantity mentioned therein had been manufactured and cleared, that as regards the shortage of 24 M.T. of gully (runners and risers), there was no shortage as the same has been cleared for remelting within the factory, that the alleged shortages in the stock of finished goods and cenvated raw material are not actual shortages, as at the time of officers visit, the stock of the finished goods and raw material was updated till 24/11/08 only and the shortage had been determined by comparing the stock of raw mater .....

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..... pur, and, therefore, the production determined on the basis of the production slips pertaining to November 2008 and first fortnight of December 2008 was the actual production of MS Ingots, that in view of this, the duty demand of around ₹ 14,00,000/- is a strong footing and, hence, the amount deposited by the appellant company is not sufficient to safeguard the interests of the Revenue. 5. I have considered the submissions from both the sides and perused the records. 6. The duty demand on account of shortage of the finished goods and cenvated raw material is based on the difference between the stock found on the officer s visit to the factory on 16/12/08 and the balance of finished goods and raw material recorded in the statutor .....

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