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TMI Blog2017 (5) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... r of stock taking, there are bound to be variation and/or discrepancy. The variation in the case of sponge iron is less than 20%, whereas the variation in the stock of MS Ingots is about 55%. The variation in stock of sponge iron is considered as normal variation and the same does not attract any adverse inference. So far stock of MS ingots is concerned, there is a variation about 55%. Considering the variation of 20%, as normal, the demand on the balance shortage of MS ingots, lying in the furnace division as well as rolling mill division, confirmed. Penalty - Held that: - in view, the facts on record, there is no instance of any clandestine activity and/or removal of Excisable Goods - it is not a fit case for penalty u/r 25 of CER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. M.S. Ingot (Rolling Division) 112.340 45 -67.34 1616160 233050 3. Sponge Iron 318 290 -28 445200 64198 TOTAL 620054 In the course of statement recorded of the person In-charge, he stated that he is unable to rightly explain the shortage, but the same appears to be due to storage loss. It appeared to revenue that the shortage was due to clandestine removal of the goods, particularly M.S. Ingot, as the same is finished product in the furnace divis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 27 th August, 2009 that the shortage appear to be due to clandestine removal, as the responsible person has not disputed the manner of stock verification and accordingly, duty on the differential stock amounting to ₹ 7,84,912/-, including cess was demanded with further proposal to appropriate the same from the amount already deposited. Further, demand of Cenvat credit ₹ 85,980/- was raised involved in the short detected Cenvatable raw material that is MS Ingot with further proposal to levy penalty. 4. The show cause notices were adjudicated on contest and the proposed demands confirmed and further penalty was imposed. Being aggrieved, the appellants preferred appeal before learned Commissioner (Appeals) who vide the comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he whole stock lying in the factory premises. Only a sample of the stock was weighed and the same was multiplied with the number of bags and Ingots etc, as could be counted or estimated. Thus, the fact of estimation of the stock is evident on the face of the record. I further hold that in such manner of stock taking. There are bound to be variation and/or discrepancy. In the case of Tehri Girders Ltd., I find that the variation found in two-three major items like shapes and sections, TMT bars and sponge iron is from 5% to 15%. I hold the same to be normal variation under the method of stock estimation adopted by the revenue calling for no adverse inference. In this view of the matter the appeal of Tehri Girders Ltd. is allowed and the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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