M.P. IRON & STEEL CO. Vs. CCE

JUDGEMENT

(1.) Appeals filed by M/s. M.P. Iron and Steel Co. and by Shri N.K. Jain were heard together as the two appeals arise out of the same order and are being disposed of by this common order.

(2.) Ld. Commissioner had confirmed the demand of duty of Rs. 52,86,759, confirmed penalty of an equal amount and imposed an penalty of Rs. 5 lakhs on Shri N.K. Jain, General Manager.

(3.) The facts of the case briefly stated are that M/s. M.P. Iron and Steel Co. are engaged in the manufacture of excisable goods i.e. wire rods, rounds etc. The Officers of Central Excise visited the factory premises of the appellant and carried out a physical verification of the stock of raw -material and finished goods. On verification it was found that the actual stock of Billets and Blooms was less than the quantity shown in the RG -I register. Statement of Shri Pushpak Bansal, Dy. Manager was recorded. He deposed that he was unable to explain the shortage in stock of Billets and Blooms. Statement of Shri N.K. Jain was also recorded wherein he stated that he was satisfied with the manner of conducting the stock verification. Shri N.K. Jain in his statement further stated that Billets and Blooms are intermediate product and normally being used as captive consumption for rolling of wire rods and rounds of various sizes. He explained the system of manufacturing process of the goods. He stated that the appellants are melting steel of various grades in their Electric Arc Furnace; that after melting are converted into Billets and Blooms through a continuous Casting Machine. As SCN was issued to the appellant asking them to explain as to why duty should not be demanded on shortages and why penalty should not be imposed. In reply to the SCN, the appellants submitted that there was no shortage; that the shortage alleged by the authorities was on account of grinding loss. Ld. Commissioner while adjudicating the case held as indicated above.