2016 (6) TMI 1014

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s reported in their RG-1 register. A show-cause notice was issued to the appellant alleging that the difference in the stock reported in the 3 CD returns and the RG-1 register were the finished goods cleared clandestinely. Accordingly, duty on said stock was demanded in respect of the financial year 1998-99. Subsequently, another show-cause notice was issued on similar grounds for the year 1998-99, 1999-2000 & 2000-01. The said demand was confirmed by the Commissioner after allowing the cum duty benefit. Aggrieved by the said order, the appellants are in appeal before this Tribunal. 2. Learned Counsel for the appellant argued that the financial records are made as per the principles of accounting laid down by the ICAI. It was argued that s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... unts and not in RG-1. Thus, the same quantity of 96 MT and 37 MT has considered twice while raising the demand by way of two different show-cause notices." Similarly, he pointed out that they had explained the difference for other year as well. Learned Counsel also pointed out that the Commissioner in the impugned order had not given any reasons for not accepting the reconciliation submitted by them. He further pointed out that there was no allegation of clandestine clearance by them and in these circumstances, no demand of duty can be made. He also pointed out that the shortage pointed out was less than 1% of the volume manufactured during the year. He especially relied on the decision of the Tribunal in the case of Shree Precoated Steel .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... not taken into account the quantities of finished products lying unpacked in stock. It is fruitless to speculate what the position would be if stock of such goods would not have been included. In that situation comparison between different kind of products between finished products lying in stock and stock computation of semi-finished products made in the return to the Income-tax Department does not justify finding that there has been shortage of excisable goods. While the Departmental Representative adopts the reasoning in the Commissioner's order he was unable to explain the difference on the basis of computation. His emphasis on the other aspect of the matter does not have the effect of showing that the allegations with regard to these .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X