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TMI Blog2015 (10) TMI 2518X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the factory premises on 22/02/12 whereby the stock of sugar, molasses was taken and some discrepancy was found to the effect that against the stock of 92, 736.10 quintals of Molasses, an excess of 1272.2 quintal was found. Against the stock of sugar on the date 1,34,190 quintals, shortage of 65 quintals was found. It was found that the appellant have cleared Bagasse and Press Mud exempted products from the factory but were not reversing the proportionate Cenvat credit on inputs, nor paying the amount equivalent to 5% of the amount charged by them at the time of clearance of the same, as required under rule 6 of Cenvat Credit Rules. It appeared that the appellant was required to reverse an amount of Rs. 18,828/- on clearance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppropriated. Further duty amount of Rs. 16,33,199/- was confirmed on the scrap and the amount paid during investigation Rs. 13,03,116/- was appropriated. Further equal amount of penalty was imposed Rs. 16,33,199/- under rule 25 of Central Excise rules along with interest on the duty amount. Being aggrieved the appellant preferred appeal before ld. Commissioner vide the impugned order, he has pleased to reject the appeal. 3. Being aggrieved the appellant is in appeal before this Tribunal. The ld. Counsel for the appellant has urged that whatever difference or excess stock of mollases is alleged, the same is a normal variation in taking the stock which was taken at about 1:30 PM on the date of inspection when the production was in process. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n being negligible on the date of inspection, did not attract any adverse inference. So far the issue of clearance of Press Mud and bagasses, is concerned, he draws my attention to the ruling of Honourable Allahabad High Court in the case of Balarampur Chini Mills Ltd. Vs. Union of India 2014 (300) ELT 372 (All.), wherein the Honourable High Court have held that press mud and bagasse are waste generated in the process of manufacture of sugar and molasses and as such no duty is required to be paid and/or reversed on the clearance of the same. Against the ruling of Honourable Allahabad High Court, in the aforesaid case, Revenue had filed Appeal before the Honourable Supreme Court wherein the ruling of the Honourable High Court hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Central Excise and under the State Excise and also in view of the periodic inspections, duly endorsed in the State Excise Records, I hold that there is no reason for drawing the adverse inference in respect of some excess stock on the date of inspection which is hardly about 2.5% of the gross stock on that date. Further as manufacturing process was going on, there is bound to be some error in the stock taking as there was element of estimation due to the presence of foam in the top layer of the tanks. Similarly the variation in the stock of sugar on the physical stock taken, being less than half percent, the same is considered as a normal variation in stocktaking in view of the production being in process and accordingly the duty con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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