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TMI Blog2017 (5) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... e Additional Commissioner have been rightly reduced to 25% under proviso to Section 11 AC of the Act. 3. The brief facts of the case are that the respondent-assessee registered with the Department, engaged in manufacturer of MS bars. They were availing Cenvat credit on their raw material/input namely MS ingots. There was an inspection in the factory premises of the respondent on 20th August, 2008 and stock of raw material and finished goods were verified and the data is summarized in table below. TABLE Sl. No. Description of goods Book Balance as on 20.08.08 Stock found in Physical stock taking Difference, if any 1. M.S. Ingots 1524.540 MT 679.910 MT (-) 844.63 MT 2. M.S. Bars 2290.800 MT 2205.00 MT (-) 85.800 MT 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of finished product. Since they were new in the industry, they employed few experienced technical persons for assisting in looking after the manufacturing process. These people impressed him that they had a thorough knowledge and experience in running such kind of industry. He further stated that he relied fully on them and accordingly, the consumption of raw material and production records was maintained. Those persons had impressed upon him that actual consumption of inputs was to be ascertained on the basis of final products manufactured, considering the reasonable percentage of burning loss. The Director further admitted that he being new in the field, was not in a position to crosscheck their claims and/or advice. He furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have held that no demand of duty is sustainable, only for some apparent shortage found at the time of stocktaking without any instance of clandestine activity on the part of the manufacturer. I further find that on the discrepancy pointed on inspection appellant had reversed the Cenvat credit taken on the raw material and paid the duty on the finished goods found short, under intimation to the revenue. Under such circumstances, I find that the show cause notice is vague and presumptive and accordingly not sustainable. In this view of the matter I, set aside the impugned order and dismiss the appeal filed by revenue. The respondent assessee will be entitled for consequential benefits, in accordance with law. 7. This Tribunal appreciates t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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