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TMI Blog2017 (3) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... l Choudhary The issue in this appeal by the appellant-assessee, a manufacturer of MS ingots, Runner and Riser as well as M.G. Kraft Paper, is whether for variation found at the time of inspection by Revenue in the stock of finished products being M.G. Kraft paper and the stock of raw material being HMS scrap, found short, whether penalties are exigible under the provisions of Rule 25 of CER, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grawal the Authorized signatory, admitted the shortage of finished products as well as raw materials as detected on inspection. However, he could not explain the reason for shortage. However, the appellant deposited by debiting Rs. 97,421/- + Rs. 1948/- for shortage of M.G Kraft paper and + Rs. 9845/- towards shortage of HMS scrap - raw material on 09/01/2006 itself. Accordingly, SCN dated 27/11/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the stock-taking was done within a span of about 5/10 minutes and in such short time, the physical verification by weightage could not be done and only an estimation of the stock have been done by counting the bundles and multiplying an approximate weight, and as such the variation is bound to be there. Under such circumstances, no adverse inference is called for. However, the SCN was adjudicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l provision under Section 11AC and demand of interest are not attracted has no force and accordingly, is not sustainable. Being aggrieved, the appellant is before this Tribunal. 4. The Id. counsel for the appellant states that it is an admitted fact on record that some discrepancy found in the stock which was by way of estimation, no instance of any clandestine activity have been found by Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by way of estimation and there is bound to variation, which have not been controverted by the Revenue, in the impugned orders. Under such facts and circumstances, I hold that the appellant is entitled to the benefit of the provisions of sub-section 23 of Section 11 A of the Central Excise Act and under such facts and circumstances, no show cause notice was required to be issued. Accordingly, I s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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