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TMI Blog2005 (8) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... and steel products of different grades. They cleared the finished products from their factory to various branches/stockyards on payment of duty. The goods are sold at the branches/stockyards to the customers by raising delivery challan-cum-invoice. Due to various reasons, certain discrepancies are noticed in respect of quantities of goods dispatched from the factory and the quantities sold from the stock yards/branches. When the stockyard quantity is less than the quantity cleared from the factory, there is excess payment of duty by appellants. On the contrary if the stockyard quantity is more than the quantity cleared from the factory, there is short payment of duty. The appellant took up this matter with the local jurisdictional authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he differential duty, if any, is being paid at the end of the year as above, the Modvat availment by the customers who buy from the stockyards/depots will be as per the invoice of the stockyards/depots only. In other words, no further Modvat credit to the buyers will be allowed on account of payment of such differential duty." 4. Be that as it may, the Revenue proceeded against he appellants by issue of show cause notice dated 26-4-1999 for the period from 1994 to 1998 on the ground that the appellants cleared excess stock from the factory. The demand is purely based on difference between the quantity cleared from the depot and that from the factory. In other words the Revenue has taken into account only the excess and no allowance has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity was not correct in ignoring the same. The appellants have stated that while the duty demanded on the alleged excess quantity of Rs. 36,269.415 MT is Rs. 4,82,79,280/-, the duty paid on shortage is Rs. 6,51,55,344/-. In other words, the appellants have paid duty of Rs. 1,68,76,064/- in excess. If the principle enunciated in Board Circular is followed, the appellants would be entitled to carry forward the excess payment. In view of our observations, there is no justification for imposing any penalty. We hold that the Board's circular is applicable even to the present case and the excess and shortage have to be adjusted. Therefore, we set aside the order and remand the matter to the original authority for applying Board circular and deter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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