SAHAJ CERCHEM (P) LTD. Vs. CCE

JUDGEMENT

(1.) THE relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Ceramic Glaze Frit classifiable under Sub -heading 3207.90 of the Schedule to the Central Excise Tariff Act, 1985. On 9.10.2004 Central Excise officers visited the appellants' factory and conducted stock verification. The said officers detected shortage of finished goods involving central excise duty of Rs. 58, 038/ -. Shri Subhash Chand Jain, authorized signatory of the appellant company admitted the shortage and deposited the duty on the same day. Original authority confirmed the demand of duty of Rs. 58,038/ - and appropriated the said amount as deposited by them and also imposed penalty of equal amount under Section 11AC of the Central Excise Act. The Commissioner (Appeals) upheld the adjudication order.

(2.) AFTER hearing both sides and on perusal of the records, it is seen that the authorised signatory, in his statement, stated that the shortage of stock of some final product is occurred as the said final produce used in the manufacture of other products which are not entered in their stock register. Commissioner (Appeals) observed that when the shortage is real, admitted, but not explained the charge of clandestine removal is proved.