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TMI Blog2007 (2) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... demand of duty of Rs 2,64,850/- and penalty of equal amount along with interest and redemption fine of Rs.25,000/- on appellant no. (1) and penalty of Rs.10,000/- on appellant no. (2) is concerned. 2. The relevant facts of the case in brief are that: the appellant No. (1) are engaged in the manufacture of hot re-rolled products of Iron & Steel falling under Chapter 72 of the Central Excise Tariff Act, 1985. The appellant had been paying duty under the Compounded Levy Scheme under Section 3A of the Central Excise Act, 1944, which was discontinued w.e.f. 1-4-2000. Vide CBEC Circular F.No. 522/2000-CX dated 31-3-2000, the opening stock of finished goods lying with re-rolling mills as on 1-4-2000 was to be treated as duty paid goods and was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty of Rs.2,54,496/- on 120 MT of MS Square Bars and further demand of Rs.3……. /- in respect of shortage of inputs. He has also imposed redemption fine of Rs.25,000/- in respect of confiscated excess finished goods and imposed penalty of Rs. 2,54,496/- and Rs. 20,000/- under Section 11AC and Rule 173Q respectively on the appellant no. (1). He also imposed penalty of Rs.15,000/- and Rs. 10,000/- on Shri R.K. Saraogi, Proprietor of the appellant no. (1) and Shri N.N. Swam Manager of the appellant no. (1) respectively. In appeal, the Commissioner (Appeals) set aside the penalty imposed on Skin R.K. Saraogi, Proprietor of the appellant no. (1) and otherwise the appeal was rejected. 3. The learned advocate on behalf of the appellants submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Rajkot, 2004 (169) E.L.T. 251 (T); (iii) Shiva Steel Rolling Mills v. CCE, Kolkata-II, 2005 (186) E.L.T. 326 (T); (iv) K.L. Steels Ltd. v, CCE, Meerut, 1998 (100) E.L.T. 406 (1); (v) Aar Kay industires v. CCE, Chandigarh, 2004 (165) E.L.T. 412 (T); (vi) Malwa Cotton Spinning Mills Ltd. v. CCE, Chandigarh-I, 2003 (155) E.L.T. 161 (T); and (vii) Lalit Chordía v. CCE, Jaipur-II, 2002 (150) E.L.T. 584 (T). He also submits that penalty imposed on the Manager of the appellant No. (1) is not justifiable as he is only an employee. He relied upon in the case of Z.U. Alvi v. CCE, Bhopal, 2000 (117) E.L.T. 69 (T). 4. The learned DR on behalf of the respondents reiterates the findings of the Commissioner (Appeals). He submits that in the insta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was conducted on eye estimation, cannot be acceptable for the reason that Shri N.N. Swamy, Manager of the appellant No. (1), declared the size wise finished goods for the purpose of verification of the stocks and on that basis the Central Excise Officers ascertained the stocks. The stock verification reports were also signed by Shri N.M. Swamy. In my view, the appellants cannot change their stand by saying that the stock verification was done by the Officers on eye estimation basis. As such, I find that the demand of duty and confiscation of the goods on excess finished goods and shortage of inputs are correct. The case laws relied upon by the learned advocate are not applicable in the present case for the reasons as under: (i) In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urement taking at the time of entering production and at the time of clearance of the goods. 7. In the present case, in reply to the show cause notice, the appellants accepted that the variation of the stock are based upon the piece of size wise stock declared by Shri N.M. Swamy, Manager of the appellant No. (1), accordingly the stock was ascertained by the Officer. In my view, the Central Excise Officers ascertained the stock of the finished goods and inputs on the basis of the declaration made by the authorized signatory, Shri N.N. Swamy, appellant no. (2) and, therefore, the appellants cannot change their stand by saying that the Officers conducted the stocks on the basis of eye estimation. Accordingly, I do not find any reason to inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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