COMMISSIONER OF CENTRAL EXCISE Vs. NABHA STEELS LTD.

JUDGEMENT

(1.) This appeal has been filed by the Revenue against the impugned Order -in -Appeal vide which the Commissioner (Appeals) has set aside the Order -in -Original confirming the duty in respect of the short found goods, with penalty.

(2.) I have heard both the sides. The bare perusal of the record shows that the factory premises of the respondents was visited by the Central Excise officers on 25.7.2000. On verification of the stock of the raw material and finished goods, shortage of 8.835 MTs of non -alloy steel ingots was detected. Similarly, some shortage of runners and risers was also detected that the spot. These shortages were admitted by Shri Ajay Goyal, Director of the respondents and the entire duty involved on both the shortages was debited by the respondents. The plea of the respondents that no actual weighment was done for arriving at the correct shortage of the goods detailed above and that the quantity has been arrived at, on estimation basis has been wrongly accepted by the Commissioner (Appeals) for setting side the duty demand. This plea could not be allowed to be taken by them in the face of the confessional statement of Ajay Goyal, Director of the respondents before the Excise staff at the time of checking. The respondents are bound by the admission made by their Director and could not later on complain that the shortage was not properly arrived at. Even at the time of signing of the panchnama prepared at the spot, the Director of the respondents or any other representative never took exception to the mode of verification adopted by the officers for arriving at the quantity of the goods found short. Therefore, the impugned order of the Commissioner (Appeals) setting aside the duty payable by the respondents on the goods found short, cannot be sustained and is set aside. The order of original authority in this regard is maintained. However, keeping in view the facts and circumstances of the case, the penalty of Rs. 25,000 imposed on the respondents by the adjudicating authority is reduced to Rs. 10,000.

(3.) In view of the discussion made above, the appeal of the Revenue accordingly stands accepted.