RAVI ORGANICS LTD. Vs. CCE

JUDGEMENT

(1.) M/s. Ravi Organics Ltd. have filed this appeal against the demand of Central Excise duty Rs. 74,097 and equal amount of penalty imposed on them on account of shortage in the stock of inputs.

(2.) When the matter was called, no one was present on behalf of the appellants. Shri Rajesh Chhibber, learned Advocate, has asked for adjournment of the hearing as he has to go out of station. It is observed that the Stay granted to them by the Tribunal, vide Order dated 6.2.2004, was extended vide Order No. M/282/04 -NB (S) dated 18.10.2004 on the ground that the appeal is fixed for hearing on 13.11.2004. It is also observed that the appellants had also prayed in the Misc. application for preponing the hearing of the appeal. In view of these facts, the request for adjournment of hearing is not acceded to. I take up the appeal for disposal after hearing Shri V. Valte, learned SDR and after perusing the records.

(3.) When the Central Excise officers visited the factory premises of the appellants on 5.9.2001, they found shortages in some varieties of inputs. Their authorised Representative could not explain the reasons about the shortages. They, however, debited the entire duty immediately on 5.9.2001. I observe that the reasons regarding the shortages were explained only on 31.5.2002 i.e. after a period of more than 8 months. It is the contention of the appellants that shortages detected were due to adoption of incorrect method of verification of stocks as some raw material issued on the date of visit had not been taken into consideration by the officers. They have also submitted that they have immediately deposited the duty which goes to show that there was no mala fide intention; that penalty also cannot be imposed under Section 11AC of Central Excise Act and Rule 13 of the Cenvat Credit Rules, 2001. On the other hand, Shri V. Valte, learned SDR, reiterated the findings as contained in the impugned order.