(1.) Revenue, i.e., the Principal Commissioner, CGST & Central Excise, Raipur Chhattisgarh, is in appeal in the present tax case. They are assailing the Final Order No. A/50857-50858/2018-EX(DB) dated 05.03.2018 passed by the Customs, Excise, Service Tax Appellate Tribunal, Principal Bench, New Delhi (for short, 'CESTAT') as well as the order passed in Appeal No. E/51825/2015 and Appeal No. E/52038/2015 arising out of the Order-in-Original No. RPR/EXCUS/000/COM/03-04/2015 dated 29.01.2015.
(2.) Origin of the present dispute lay in a search carried out by the Headquarters Preventive Branch of the Appellant authorities in the factory premises of the private Respondents for physical stock taking of the finished goods and raw materials. This verification was carried out between 05.06.2012 to 12.06.2012. After conclusion of verification respective Panchnamas were drawn which were duly signed by the representatives of the Respondents-Company present. The physical stock taking revealed that there was a major shortage of 9076.766 MT of finished goods i.e. TMT Bars valued at Rs.35,28,59,278.00 involving Central Excise Duty of Rs.4,36,13,406.00. There was also shortage of 16.915 MT of raw material i.e. M.S. Ingot valued at Rs.5,53,966.00 involving duty Rs.68,470.00. In absence of any clear explanation with regard to such huge shortage in the stock, the Respondents-Company paid a part of the duty to the extent of Rs.1,87,81,877.00 and agreed to pay the balance over a period of time.
(3.) A show cause notice was issued on 28.03.2013 for raising demand and for recovery of total Central Excise Duty amounting to Rs.4,36,81,876.00 along with interest as also imposition of penalty under Sec. 11AC of the Central Excise Act, 1944.