Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 534 - AT - Central ExciseShortage in stock - Clandestine removal of goods - Held that:- alleged shortages were detected by the officers at the time of visit to the appellants factory on 21.11.08. Immediately on the next date, the appellants addressed a letter dated 22.11.08 to their jurisdictional Asstt. Commissioner denying that there was any shortages and submitted that entire goods were imported by them and were having specific mark of identification traceable batch number and specifications. The same can neither be procured from the indigenous market nor can be sold in the local market inasmuch as the same are not being used by any other manufacturer in India. They have more than 300 items of various inputs and the entire stock taking was done without actually indicating the stock position. The appellants also contended in the said letter that after the officers left, they re-examined their stock and found the same to be in order. The entire case of the Revenue is based upon the shortages admitted at the time of visit of the officers. Though the appellant immediately reconciled their stock position by writing letters to their jurisdictional Central Excise authorities and requested them for reverification, no further action was taken by the department. In any case and in any view of the matter, apart from the shortages, there is no other evidence on record to show that the appellants have cleared their raw materials without payment of duty. mere shortages by itself cannot lead to inevitable conclusion of clandestine removal, even though the assessee might have accepted to discharge their duty liability in respect of said shortages - no justification for upholding the finding of clandestine removal against the appellant and consequent confirmation of demand of duty or imposition of penalty upon both the appellants - Decided in favour of assessee.
|