9911796707
TMI Blog2002 (9) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... all the private records of the appellant, the Central Excise Officers came across a verification of annual audit report for the year 1992-93 and 1994-95 prepared by the Auditors. This report indicated a shortage of bagged calcined alumina to the tune of 3656.559 MT during the year 1992-93 and 1994-95. Since the persons concerned could not provide satisfactory explanation for the shortage, Show-cause Notice was issued to the appellants asking them to explain as to why duty amounting to Rs. 59,07,599/- should not be imposed and why interest should not be charged. 3.Arguing the case, Shri S.C. Mohanty, learned Counsel submits that the appellants were receiving bagged calcined alumina as also powdered alumina in BTAP wagons. He submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the short verifier. He submits that in the reports submitted by the stock verifier, there were certain quantities, which were not accounted for by them inasmuch as they were lying loose and a proper estimate could not be done. Ld. Counsel submitted that the appellants were maintaining RG 23A Part I Accounts properly and these accounts were not examined by the Central Excise authorities. The learned Counsel submits that there are a number of decisions of the various Courts including the Hon'ble Supreme Court in which it has been set out that all the figures must be considered before arriving at any shortage or excess, and excess in one case can be adjusted against a shortage of similar goods. Learned Counsel submits that the goods in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verifier, was not included in the report. If the same is taken the figure of shortage will get considerably reduced. The ld. DR submits that there were separate bin cards, one for calcined alumina brought by BTAP wagons and other set for bagged calcined alumina. He submits that in view of this separate record, there was very little chance of a mix up. He submits that since Modvat credit has been taken on the quantities found short, which was not used in the manufacture of final product, therefore, the demand for duty, imposition of fine and demand of interest is sustainable in law. He submits that the learned Commissioner has given detailed findings on each issue including limitation. He reiterated the findings. 5.We have heard the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng process were accounted for in the course of conducting the stock verification. 7.The stock verifier's report also indicated that the approval of various representatives of the assessee who were also associated with the Chartered Accountant was taken of the manner of verification. The stock verification was done in the presence of the custodian of the bagged calcined alumina, Internal Audit Department, Representative of Finance Department and the Departmental Representative of Raw Materials. The report also shows that the discrepancies and reconciliation were discussed with the concerned officials during the course of verification as well as while finalizing the report. The report further goes on to say that the findings of the Auditor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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