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2012 (10) TMI 940 - AT - Central ExciseDuty demand - Shortage in stock - Held that:- total stock of the appellant available in their factory on the date of visit of officer on 11-2-2009 was to the tune of Rs. 1037.059 MT. The shortages alleged by the Revenue are to the tune of 39.189 MT which are roughly around 3.7%. It is admitted case of the Revenue that no inventory were drawn by weighing the entire stock of the goods. The shortages were detected on the basis of a specific methodology (system of average weight) for weighment of finished goods and raw materials. I also find that Shri Shyam Sunder Trivedi, authorised signatory, in his on the spot statement agreed to such shortages as detected by the officers, who expressed his inability to advance any reason for the shortages. There is nothing in such statements to admit that such shortages were on account of any clandestine clearance of the final product. All these facts lead to only one conclusion that the shortages which may be made on the basis of average weight formula, were not the real but pseudo. Apart from that there is no evidence on record to allege any clandestine removal by the appellants. - there is no inculpatory statement of any person accepting such clandestine clearance nor is there any evidence on record to indicate upon clandestine removal, I find no reason to confirm the demand and imposition of penalty on the appellant - Decided in favour of assessee.
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