SARVOTTAM ROLLING MILLS PVT. LTD. Vs. COMMISSIONER OF C. EX., MEERUT
LAWS(CE)-2015-2-75
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on February 06,2015

Sarvottam Rolling Mills Pvt. Ltd. Appellant
VERSUS
Commissioner Of C. Ex., Meerut Respondents


Referred Judgements :-

COMMISSIONER OF C. EX. VS. JAIBALAJI ISPAT PVT. LTD. [REFERRED TO]


JUDGEMENT

ASHOK JINDAL - (1.)THE appellant is in appeal against the impugned order demanding duty, interest and penalty.
(2.)The facts of the case are that the appellant is engaged in manufacturing of MS Bar. On 29 -7 -2009 the physical verification of stock was conducted and it was found that there is a shortage of finished goods that is 102.230 Metric Tonnes of MS bars. They recorded the statement of their accountant who could not give any valid explanation with regard to shortage. Proceedings were initiated and panchnama was drawn. It was also found that the appellant has availed Cenvat credit on building material that is Joist Angle which was used in fabrication of building material. Therefore, the same was sought to be denied. The appellant immediately reversed the Cenvat credit and paid the duty on finished goods but the proceedings were initiated against the appellant for demanding the duty along with interest and penalty. Both the lower authorities confirmed the demand.
The ld. Counsel for the appellants submits that in this case the factory of the appellant was visited on the said date on 29 -7 -2009 at 11.05 hrs. and panchnama was drawn. They left the premises at 11.30 hrs. In 25 minutes. the whole of the stock cannot be verified as, as per the books of account the stock was 1992.260 and physically verified from 1890.03 the stock was taken on estimation assumption and same is not admissible as held by this Tribunal in the case of C.C.E. Meerut v. Shri Jai Balaji Ispat Pvt. Ltd. - : 2014 (310) E.L.T. 556 (Tri. -Del.). Therefore, it is prayed there was no shortage of finished goods. Accordingly duty is not demandable. It is further submitted that during the course of taking the stock the production on that day was not considered. If same is considered, the shortage would come down to 46 Metric Tonnes and same is less than 2 -3% of the total stock found. On that ground also demand is not sustainable. With regard to the Cenvat credit wrongly availed by them on Joist Angles, he submits that on pointing the appellant has immediately reversed the credit and not contested the issue therefore penalty be dropped.

(3.)ON the other hand ld. AR reiterated the findings of the impugned order and submits that the stock was taken in the presence of the appellant and same has not been disputed at that time. In these circumstances demand is sustainable.
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