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TMI Blog2015 (10) TMI 2196X X X X Extracts X X X X X X X X Extracts X X X X ..... ot able to give the records for such sale. In the absence of addresses of the persons to whom the scrap and the finished goods were sold, investigating authorities cannot be faulted to carry out further investigation of the buyers. Shortage of raw materials, admitted by the appellant in spite of the fact that certain MS Scrap was under process on the day of visit of the Central Excise officers indicates that the main appellant was in the practice of receiving raw materials unscrupulously and using the same in the manufacture of finished goods removed of clandestinely. Inspite of some MS Scrap in process and lying near the furnace, in his statement the Director of the main appellant did not claim that raw materials in stock was incorrectl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J dtd 7.9.2010 under which OIO No 19/ADC/2010 date 31.3.2010 was upheld. Under OIO date 31.3.2010 Adjudicating Authority confirmed a demand of ₹ 31,97,437/-, against the main appellant alongwith interest and also imposed equivalent penalty under Rule 25 of the Central Excise Rules 2002, read with Section 11AC of the Central Excise Act 1944 giving option of 25% reduced penalty also as per provisions of Section 11AC, Central Excise Act 1944. Penalties of ₹ 5 lac each were imposed upon Sajidmiyan Nazir, Director of the main appellant and Shri Anwar Ul Islam, Authorised Signatory of the main appellant, which were upheld up the first Appellate Authority and appeals had been filed by the other appellants with respect to such penaltie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entative, appearing on behalf of Revenue argued that shortage of raw materials during the visit by the officers of Central Excise is the indication that appellant in indulging in the manufacture of excisable goods and subsequently clandestine clearance of such goods manufactured. That the shortage of finished goods in the stock establishes that the same have been cleared without payment of proper duty. He relies upon the case law of Singh Scrap Processing Pvt Ltd Vs CCE, Mumbai vi [2005(192) ELT. 673(Tri. Mum.)] to argue that onus to explain taking of proper credit on raw materials is on an assessee. That in this case appellant in their statement clearly admits that the shortage pointed by the officer of Central Excise is clandestinely cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtage of MS scrap is correct as they have been sold by the appellant the scrap in the local market to various individual traders without preparing any bills. With respect to shortage of SS Slabs, it was stated by Shri Mohammed Kaizer, Director, that they have cleared the goods without preparing any bills. On a specific question asked by the investigating officer as to whom the scrap and finished goods were sold, the appellant was not able to give the records for such sale. In the absence of addresses of the persons to whom the scrap and the finished goods were sold, investigating authorities cannot be faulted to carry out further investigation of the buyers. Shortage of raw materials, admitted by the appellant in spite of the fact that cert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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