JINDAL STRIPS LTD. Vs. CCE

JUDGEMENT

(1.) This appeal has been directed against the impugned Order -in -Appeal vide which the Commissioner (Appeals) has affirmed the Order -in -Original of the adjudicating authority who confirmed the duty demand of Rs. 6,26,355 with penalty of equal amount against them. The appellants are engaged in the manufacture of Hot rolled SS Flats and HR SS Coils. On conducting physical verification of their finished goods as well as raw material by the Central Excise officers on 17th and 18th September 2001, shortages of finished goods involving Central Excise duty of the above amount was found. They debited the duty voluntarily. After issuance of show -cause notice, the adjudicating authority affirmed the duty with equal amount of penalty detailed above. The Commissioner (Appeals) has affirmed that order.

(2.) The learned Counsel has contended that shortage was not arrived at by taking out physical verification of the stock of finished goods. It was based only on eye estimation. He has also contended that duty amount has also not been worked out in accordance with the assessable value of goods as shown in the invoices. Therefore, the impugned order deserves to be set aside. The learned Counsel has also argued that penalty imposed in on a higher side and deserves to be reduced, if not totally set aside.

(3.) On the other hand, the learned SDR has reiterated the correctness of the impugned order.