Raju ORDER
Raju, Member (J)
1. This appeal has been filed by M/s. Varsana Ispat Ltd. (VIL) against the confirmation of demand of Central Excise, interest and imposition of penalty under Section 11AC of Central Excise Act, 1944 read with Section 25 of the Central Excise Act, 2005. Appeal has also been filed by Shri. Kunal Bubna, General Manager Commercial and Finance of M/s. Varsana Ispat Ltd.
2. On stock taking of the finished stock in appellant factory it was found that there was no stock of 12mm TMT bars whereas the daily stock account of the appellant showed 368.54 MT in the records. Sh. Deepak Arora, Manager Commercial admitted that there were shortage of TMT bars as compared to daily stock account but claimed that the said shortage is on account of the recording of the quantity manufactured without proper weighment of the same. He further pointed out that the manufacture of TMT bars had stopped since, May 2008 and hence, checking of stocks of goods on daily basis was not done, however, they paid Central Excise duty on the goods found short. Sh. Kunal Bubna noticee No. 2 in his statement stated that he was looking after day to day working of purchases, sale and production. He stated that they are manufacturing, MS Billets, MS Ingots, SS Billets, TMT bars, MS angles and beams since 2005 and were claiming Notification No. 39/2001-CE : MANU/EXCT/0011/2001 dated 31.07.2001. He pointing out that they were using there in-house kiln to manufacture billets/ingots. He pointed out that TMT bars, MS angles and beams were manufactured from billets. He admitted that there were a shortage. He also claimed that the shortage could be due to taking of approximate weight of production in daily stock account and due to the errors from a period of time the figure of 368.540 MT has been recorded. He also agreed not to litigate this issue at any stage in future and would not claim the benefit of Notification No. 39/2001-CE : MANU/EXCT/0011/2001 dated 31.07.2001 on the said quantity of TMT bars found short. He also stated that he would not claim refund of the duty paid. Thereafter the notice alleges that M/s. Varsana Ispat Ltd. (VIL) failed to properly account for manufacture and clearance of the finished goods i.e. TMT bars in the statutory records. It also alleges that there was shortage of TMT bars as compared to their daily stock account and it was alleged that the same appears to have been cleared by them without payment of Central Excise duty. The Additional Commissioner dropped the proceeding relying on the Tribunal relying on following case laws.
• CCE, Aurangabad Vs. Dhanlaxmi Re-rolling Mills MANU/CM/7042/2006 : 2007 (208) ELT 104 (Tri. Mum.)
• Steel Authority of India Ltd. 2006 (200) ELT 229 (Tri. Bang.)
• Rashtriya Ispat Nigam Ltd. 2009 (235) ELT 248 (Tri. Bang.)
He also holds that there is no evidence of clandestine removal unearthed by the investigation. He also holds that since the appellants were working under Notification No. 39/2001-CE : MANU/EXCT/0011/2001 dated 31.07.2001 there could not be any intention to evade duty, as........