9911796707
TMI Blog2023 (6) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... not been followed by the appellants and the shortages have been noticed annually which clearly proves that the goods have been clandestinely removed without payment of duty. They also claimed that the shortages are much beyond the condonation of losses as laid down by the Board Circular. However, these shortages itself cannot be a ground for evidence of clandestine removal. Further, the impugned orders invoke proviso to Section 11A on the ground that the department had come to know all the facts only in 2009 after Annual Stock taking statement was filed by the appellant. The fact that clandestine removal of any goods has not been proved with any evidences except to state that the statements of shortages itself proves the offence of clandes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.9,26,59,195/- E/20430/2015 No.MYS-EXCUS-000-COM-001-12-14-15 dt. 2.12.2014 1.4.2012 to 31.03.2013 Rs.5,76,10,106/- Rs.5,76,10,106/- E/20463/2015 No.MYS-EXCUS-000-COM-011-14-15 dt. 2.12.2014 1.4.2011 to 31.03.2012 Rs.10,78,49,370/- Rs.10,78,49,370/- E/20464/2015 No.MYS-EXCUS-000-COM-010-14-15 dt. 2.12.2014 1.4.2010 to 31.03.2011 Rs.15,09,24,274/- Rs.15,09,24,274/- E/20174/2017 No.MYS-EXCUS-000-COM-GVK-08-16-17 dt.15.11.2016 1.4.2013 to 31.03.2014 Rs.7,52,28,312/- Rs.7,52,28,312/- M/s. Steel Authority of India Ltd., the appellants, are the manufacturers of Iron and Steel Products falling under Chapter 72, 73 and 84 and other miscellaneous products of the Central Excise Tariff Act, 1985. Appellants conduct annual stock verification of fini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to comparison of two estimates which is inherently incorrect and leads to distorted conclusions. The excess/deficiency in stock was due to the fact that both production and physical stock taking was based on estimates whereas the clearances were based on actual weighment. Therefore, they claimed that there are no shortages as such attracting levy of excise duty. 3.1 She further claims that the Board had issued two circulars i.e., (i) CBEC Circular No.4/73/70/CS 6/1971 dated 12.4.1971 and (ii) CBEC Circular No.52/79 CS 6 dated 16.10.1979 laying down guidelines for condonation of losses and also with regard to the different practices followed in the Steel Plants for accounting production, clearance, stock taking, etc., and to consider the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n their Mangalore unit by confirming the demand on the differential quantities. This order was set aside by this Tribunal vide Final Order No.1745/2005 dated 4.10.2005. It is also the fact that the Commissioner of Central Excise, Mysore vide Order-in-Original No.1/CCE/2008 dated 31.3.2008 confirmed the demand on similar set of facts, which has been set aside vide Final Order No.20435/2023 dated 25.05.2023. 5.1 The appellant is a public sector undertaking and one of the large tax payers subject to regular audit by the officers from Central Excise and the Accountant General s department. The appellant has submitted that the Books of Accounts were audited periodically during the disputed period in the show-cause notice. 5.2 In the impugned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) ELT 229 (Tri.-Bang.), the Tribunal has held that the discrepancy between the RG1 stock and the physical stock are based on the estimated production and not on actual weighment. Comparison between two estimations is inherently inaccurate. Because of these shortages, if any, is inflated due to errors in taking opening balance and physical stock. Considering the practical difficulties in estimating the actual stock and in view of the submissions made by the appellant, the Tribunal had set aside the impugned order. 5.4 In the case of Rourkela Steel Plant (SAIL) vs. CCE, Bhubaneswar: 2001 (137) ELT 566 (Tri.-Kolkata), the Tribunal had held that even if there are differences in the stock taking and the shortages are found, the duty can be dema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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